That's correct.
One thing, though, I don't know if you're aware of this but, last time I checked, there's a caching problem (to me is a bug) when uploading images to your wp account. If you upload mypicture.jpg and for whatever reason you want to replace it, you'd need to upload your new image as mypicture1.jpg because if you upload it as 'mypicture.jpg' it won't replace the previous one. Also, if you delete it from your dashboard, although you won't see it in your image list, the image will still exist on their servers and will still be displayed. This behavior has been reported but I don't know if something's been done about it.
HTH.