How are Web Links supposed to work?

I'm confused about how WebLinks are supposed to work. In the configuration page, there's the following option:

Links lead URL or to Web Link node:
URL
node

This seems to me to allow the option for the Web Link to point to a node, or directly to the page being linked to. Is that correct?

In other words, what I expect from that option, and from the descriptions, is that the following use-case would apply:

1. User sees page with a number of node titles and teasers for links to another website.
2. User clicks on node title.
3. Other website loads.

Instead, this seems to be how it works:

1. User sees page with a number of node titles and teasers for links to another website.
2. User clicks on node title.
3. Node displays, with link as a naked link (i.e., no link text, just the link).
4. User clicks on naked link.
5. Other website loads.

Am I missing something?