Hi Ray.
That is certainly my understanding, yes. I suppose Magix rationale for this is they really, really, really want you to continue your Update Service!!! 😇
The basic situation is: if a reinstall of any version of any Magix software is required after the initial, automatic Update Service has expired, that reinstall will return the app to the version it was when the original purchase was made. I suspect one "reason" for this is that the installer, which any user can download from his/her Magix account, is the one which was allocated to that account and current on the date of purchase and that that installer has no way of knowing about any updates which had been received by the user's system prior to the date on which the reinstall occurs. And, since the Update Service is no longer "live", no updates or upgrades are now available.
Jeff