That's correct. I want to do some demos for a concept that I have called full-screen gesture interfaces (Similar to things like how the Rise app sets time). Most of the current implementations for touches only show where your fingers are contacting the screen and not finger movement. With this, you can see the gestures as well as the touches. I also wrote a post about it [1].
It's also very helpful when you're doing a demo or a pitch and the phone is hooked up to a TV or computer via AirPlay. It gives observers a better understanding of what you're clicking, swiping, and long pressing.
[1] - http://blog.joeblau.com/ios-touch-visualizer