Yes, exactly. You can create field groups that are attached to the terms of a taxonomy the same way that field groups are attached to a post. When editing a term, like a category or tag, the fields can be completed.
For example, you can add an image field so that you can associate an image with the term. Or you can add a WYSIWYG editor to allow for editable content for a term just like the editor for a post.
Hope this helps.
~JH
