that is correct, the chips inside laptop batteries these days do hundreds of things. they control charging while logging everything the battery go through, including temperature changes, how many times its been charged and discharged, if its ever overcharged, undercharged, weak or dying cells... it all gets logged into memory for the life of the battery pack. and any major fault can trip a permanent safety switch that disables the pack forever (thats why a lot of times if you go too long without charging, the battey doesnt work at all anymore).
so i suppose dell's directions couldnt hurt, but i think its more for warranty purposes anyway. doing the initial full cycles would give the battery pack good base data, which in case of failure the service guys would have a better idea of what the battery was like when new... but really the charging is based off the voltage at any given time so i dont think it would effect the actual life of the battery.