I'm hoping it means that and more. Such as the ability to place certain gender into a usergroup, or certain selection in a custom profile automatically placed into a certain usergroup, or even certain age automatically placed into a usergroup.
If a member of group A exceeds N points, should be promoted to group B.
If a member gets M number of warnings, should be moved to a group C with some restrictions for K number of Days.
... ... ... And what not?