Should (password_policy_block == 1) block user accounts?

There are two options for the "Blocking expired accounts" setting:

• '0' => Expired accounts are blocked. Only administrators can unblock them
• '1' => The user with expired account is not blocked, but sent to a change password page. If the password is not changed, the account is blocked and the user cannot login again.

Looking at the code, suspect the latter (bolded) part of the second statement is not true. An account's status is only set to 0 in two places:

1. in hook_user(op=login), but only where (variable_get('password_policy_block', 0) == 0)
2. in hook_cron(), but only where (variable_get('password_policy_block', 0) == 0)

So if the second "Blocking expired accounts" option is selected ('1'), the account will *not* be blocked. Is this a functionality bug, or an interface/documentation bug?

FWIW, I prefer the way this option appears to behave today, where it does not block the user, but forces him to enter a new password to utilize the site.

Thanks!