Basically yes, you have the right idea.
I will try to explain a bit more to clarify (hopefully not to add consusion). The Train Electrics relays require power to maintain their contacts in one position (common to normally open), when power is removed they immediately revert back to their default position (common to normally closed). Latching relays do not do this, they stay where ever you set them. They are set with just a pulse or short burst of power and stay where set until you change them. The Train Electrics relay requires a 'maintained' switch (as in a light switch). The latching relays require a 'momentary' switch (quick push of the button and then release it). A maintained switch would burn out the Atlas snap relay or switch machine in short order, same as holding the switch button down too long.
Alex's (he is forum member Ingeniero No1) position indicators do not require relays and can not get out of sync with the actual switch position as the snap relays supposedly can. And they don't burn up, they are totally separate from the switch machines.
Will be glad to try and answer any further questions if this is still not very clear, just let me know.