That is true, but its not the whole story:
The main attraction is ease of driving screws from the operators point of view. Say I am sticking a 2" twin thread wood screw into softwood. A drill driver will do that without a pilot hole, and has more than enough torque. However you need to apply reasonably a significant amount of push to the tool to keep it adequately engaged in the screw head. That also means driving screws at arms length or in awkward places can be difficult.
The way the ID drives (in discrete rotational "punches") makes it much less likely that the bit will jump out of the head - so you can drive the screw with less physical effort from the operator. You get less torque reaction in the wrist as well.