Yea, basically, that's saying, when a stack port connection is lost, the data that would have been sent across it, is now redirected to the single remaining path. I.e. everything still functions. Although, with loss of a stack port connection, possibly, more likely to encounter congestion.
One important thing, to keep in mind about a StackWise ring, both directions are available, although one ring direction might have more congestion and/or latency reaching another switch. (That's another "feature" of "Smart Stacking", it can choses the "best" path between two switch members.)
Again, though, you physically lose on of the stack port connections, you only have one physical path between a pair of switch stack members.
Remember, whenever a vendor touts "features", they sometimes make them sound much more useful then they actually are, in many cases. (It sort of reminds me when full duplex Ethernet started to enter the market. From vendor literature, like Cisco's, they emphasized you now had twice the bandwidth, which was true. But host A sending data to host B, didn't transfer the data twice as fast!)
