Yes in a nutshell!
Previous version, and the option is still there in 10, would require you to having a seperate email application on the machine, like Mail or Outlook, that FileMaker simply passed the data and sent the email via. This meant the email will always be from whomever the machines email app was set to.
Where as now you can setup your SMTP settings and send directly from FileMaker with no need for any email application on your machine at all, and an email can be sent From any address, quite handy if your sending out emails but want it from an info address and not you, but don't want to have to change your email add settings each time.
This also allows you to send direct via SMTP from Server, so no need for an email app running on your server anymore.
Hope this helps.