Did I understand this feature correctly?

You have to take out items from your glamour dresser and you need the full set
Putting stuff in as a set REMOVES your dyes..but doesn't allow you to die stuff?

Feels like a useless feature from functionality standpoint and it had 'potential' to be good....

Example :
It'd be nice if you had 2 pieces of a set to put it in there, it'd be nice going forward for alliance raid gear (I don't collect the headpieces)
It'd be nice if you could dye stuff and use it, otherwise you might just be burning through expensive dyes if you ever used it

....

I was excited for it till someone told me how it works....Is that how it works?