Your item #2 is correct: it is not an "automated levelling system" --- it is a tool that lets you plug in a list of positions to send the extruder for checking bed level (consistent gap between nozzle and bed).
I have an M2, which has three bed level adjusting screws, and the levelling procedure would go something like this:
* Position the nozzle directly over the "front" levelling screw. Adjust the gap between nozzle and bed to one sheet of paper (or using a feeler gauge)
* Position the nozzle directly over the "back" levelling screw. Adjust gap.
* Position the nozzle directly over the "right" levelling screw. Adjust gap.
* Try other positions and make sure the gap is good over the whole bed.
Using Creator, I had defined the three user-defined Macro buttons to set the "front", "back" and "right" positions. It made levelling easier, but there were two problems with this:
1. This used up all the Macro buttons, so I couldn't use them for anything else. (Users started to ask for 'MORE MACRO BUTTONS PLEASE!!!' mostly for this reason...)
2. It didn't help with the "try other positions" part of the list.
Enter the Bed Levelling Wizard in Creator 1.1.5. Now you can create a list of point to move to for level adjustment and checking. So for the M2, you could set the positions this way:
* Directly over the "front" levelling screw (for adjusting)
* Directly over the "back" levelling screw (for adjusting)
* Directly over the "right" levelling screw (for adjusting)
* Right front corner (for checking)
* Right side center (For checking)
* Right rear corner (etc.)
* Rear center
* Left rear corner
* Left center
* Left front
* Front center
* Center of bed
After checking bed level at all those points, you KNOW you're good to go.
Plus, you have all three Macro buttons available for other stuff.
Hope this helps make clearer what the bed levelling wizard IS and ISN'T.