Yup, that's right. This is the URL fixing functionality only implemented in ABP for Firefox. If you type amazorn.com, Adblock Plus will correct it for you (if you activated this feature, it's opt-in), sending you to amazon.com.
ABP does indeed add an affiliate ID to those links, it was a monetisation idea. We've been open about this [1] (See "Monetization"), nobody's being tracked and nobody's seeing any extra ads.
I had and have some doubts about this making sense as a part of ABP, but I wouldn't consider it shady.
[1] http://adblockplus.org/blog/typo-correction-feature-in-adblo...