It probably means they will pick the tile with the best output within their sight range. As in, they'll move 1-2 tiles and settle on a 4/4 instead of a 4/3. From what I've seen so far, the pioneers are doing pretty well... unfortunately, I don't think this applies to the sovereigns when they first build a city, and they still build it where they first start (not ideal).
As for the OP, yes, yes they still are.
