He used vertical alignment elements. Block level elements ignore this property. So your understanding is correct.
This blog post provides some vertical alignment reference with some examples. It is mainly used to vertically position an image in a line of text. Or replace the valign attribute with tablecells.
So it seems you understand it completely correctly. For more information on vertical alignment properties, see w3schools .
Just to be clear; do not try to use vertical alignment to position a block level element such as a div. It will not work, as you already mentioned, for inline elements, such as images in a line of text. Using display: table-cell; and vertical alignment on the element is a hack, please use other CSS methods to vertically align the material in the div if possible.
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