Yep, that's how I understand it, too (after Ingrid straightened me out)! You need live stitches. I was doing kitchener on bound-off edges by sliding my needles back into the stitches, but it does NOT look great. Never thought of *picking up* stitches, though--what a good idea!
*Dream Swatch in Madil Eden Bamboo
On the needles:
*Isabella from Spring Knitty
*Striped hoodie from Nursery Knits
*Tomato from Knitting Daily
I'm hunterjenn on Ravelry. Come find me!