This is how it works, yes.
But some would prefer to go the Hyperion road to get licenced ROM & WB if they don't have the original HW
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Since you have the original HW, you don't need to buy AF. Aminet has all the needed tools for dumping the KS.
In the other hand, Hyperion's KS 3.1.4 & WB 3.1.4.1 may be an upgrading option.