You do need to read that resource again then.
Let me say with finality that I have read and understand the resource better than most. I have studied Permission settings here to sickening levels.
Now since it's obvious no one gets it, let me try to explain in more detail.
Lets say you are setting the "Registered" usergroup permissions and you decide you do not want them to delete their own posts or to be able to use a custom title and they have the basic user name color. Pretty standard stuff here.
Now lets say you have three tournaments and want to create a usergroup for each of them so that the winner of Tournament 1 is named after Tournament 1 and the winner of Tournament 2 is named after Tournament 2 and so on. And we do want these tournament winners to be able to delete their post and change their custom title. In addition we want these tournaments winners to have a blue colored name and a blue banner.
This is what the permissions would look like:
In this above example you would need to create a usergroup for each tournament (in this case 3 of them). You would need to rewrite or copy and paste the css color changes and do the banner changes on all 3 usergroups and you would have to tick the allow field for delete post and custom title on all 3 of them. You can't just do all this on Champion 1 because Champion 2 and 3 would inherit the standard options from the Registered group.
You can't just assign "Champion 1" to users that have won Tournament 2 or Tournament 3 because they would display as a Winner of Tournament 1 instead.
Are you with me here or have I lost you yet?
In this case, wouldn't it have been easier to set up one custom usergroup, ie...
Champion 1 and then be able to duplicate it and just rename the copies as "Champion 2", "Champion 3", "Champion 4", 5, 6, 7, 1,000,000?
I'm not sure what is so hard to understand here. Changing just the two permissions in the above example for 3 usergroups is 6 total permission changes not including re-adding the CSS color and Banner fields. Sure 3 Usergroups might not be too bad, but what if you have an entire network that looks like this?
Administrators- 2 user groups
Moderators- 2 user groups
Essential services- 3 user groups
Entertainment services- 2 user groups
Official Sponsors- 3 user groups
Championship winners- 4 user groups
What if you don't want to change just 2 permissions, but rather 10? What if you install Add-ons that have their own permission settings?
So the obvious question is why not just make a single usergroup for each of those categories so all champion winners would display in a single generic champion usergroup instead of a more personal "Champion of X" or "Champion of Y" group and graphic designers, developers, and social media personnel would all display as an Essential Service instead of as their specific job title? The answer is simple. 1, people actually prefer personal titles as opposed to generic ones and, 2, when it comes to official sponsor companies such as Razer and Logitech, they actually require their company name displayed instead of something generic like "Sponsor".