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true, and that's exactly what it does - simply speaking.
the confusion is when other things are in play, such as external 120v power from shore or generator... as this then still powers the Converter, giving the 'look' as though the battery are still connected and providing 12v output, when they are not. An owner can think that everything is A o.k., until they find that their house batteries are going lower and lower and not being charged, a great confusion to any new owner.
The 'light' can even add more confusion, a new owner might think that this is a meaning that everything is A o.k., just as they thought, when is actually only means that the 12v power is available in the coach - not giving an indication, though, that the batteries are not receiving a charge.
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