Yes, this is correct. The main reason I made this addon was purely for visual purposes as this head/tail system is unique to Blender. Having the option to scale would be a great help for Blender based armatures, but we still need a method to control the bone direction for 3rd party skeletons as Max mentioned.
True. But just to add another thing on top: If you color the respective sides of the bone +X in red and +Z in blue as well you still have a representation that is immediately visible from afar as well, though.
The axis display still has a lot of merit, of course. with a long sticky axis you can match orientations a lot better than with bone sides only.
I tried this plugin and it works great.
But actually the first step of scaling all bones to 0.1 may not be necessary, because in the bone display can be set to scale the virtual object by the length of the bones, and at present it is difficult to choose a proxy for some overlapping bones after scaling to 0.1 uniformly.
Here’s how it looks after I modified it a little, adding the UI and update buttons, and the orb virtual object scales by bone length.