Exactly. You are changing the Smarty tag (anything in a .tpl file between { and } symbols is Smarty) so that it isn't recognised as such.
You'll also notice that the beginning of every .tpl file has the file information, version etc. It is also inside one of these tags. If it was not in a {* *} tag then it would be displayed in the store.
They basically allow you to make "comments' through your code.
Sorry for going overboard on the explanation, I'm just hoping it helps someone else down the line.
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