Yes, that's correct. That rule modification got added in to provide folks with 2 full off-seasons of free agent acquisitions to improve their team, rather than just the one initial off-season from the start. What's different (and one of the things I love) about this world is that you don't have to have a bunch of superstars to go deep into the playoffs. There really isn't that large of a gap between the 70 win teams and the 95 win teams.
As foulballz mentions, the openings come from the polarizing rules. It's either someone's favorite world (if they love the concept) or least favorite world (if they can't live without trading). So most of the openings are from folks who said, "I'm glad I tried it, but it just isn't for me." So it takes a little patience (both in filling at rollover, and with building your team), but the folks who are here love it!