Incorrect. It is support for an enhancement that rbenv provides.
You often want to invoke an application binstub from another program such as cron, and you want to use the per-project Ruby version specified in the application's root directory. Other version managers require you to spawn a subshell and load the version manager into the shell or otherwise set up the per-project Ruby version environment, then `cd` into the application directory, and finally run the binstub.
rbenv requires an environment set-up step too—set `RBENV_DIR` to the application root—but provides a wrapper that eliminates the need for such gymnastics. When you change a binstub's shebang to `#!/usr/bin/env ruby-local-exec` rbenv automatically searches up the binstub's directory tree to find the right Ruby version.