Yes, that is for output and works with a program that runs until it gets a sigint or sigterm.
If a program is terminating immediately it sees no input and doesn't have an option to run until it sees an explicit EOF (i.e. pipe closure etc.) then it's obviously a problem. OTOH my experience with things like sendmail was that they ran until they got an explicit EOM, e.g. . as the first character of a line.
MarkMLl