Correct. The coating is for scuffing on initial break-in. At Ford we did a few sets of coated zero-clearance pistons for a "world class" small car 4-cyl engine. The block had a full bedplate and the crank was a nice forged fully counterweighted design.
No issues with the way it ran, though the zero clearance wouldn't work in production. That engine was hand built to a gnat's eyelash. Man it sounded good and would happily rev to 8,000. I'm sure it helped that the pistons had steel struts and were hypereutectic...
Of course it took another 20 years to get an engine that good into production, but that's another story!