Yes, this is what we mean. And you answer the issue yourself when you say "you can get many turn-based games where the turn is more to do with a fixed round". Just so - those games are round based, not turn-based.
Whilst games like NWN2 have rounds on individual timers, the actions are still resolved simultaneously in realtime (even though the various characters might be on a different heartbeat). This is completely different gameplay to real turn-based (IGOUGO) and many concessions are made with the D&D ruleset to accomodate NWN2's (et al) gameplay.
I can appreciate this may not be to an individual's taste but for those that prefer TB, it can't shoe-horned into realtime just by pausing the simultaneous action.
To use ToEE as an example, let's say my party suddenly encounters a Hill Giant and my weak gnome mage is within the giant's range. He will surely get squashed by the first attack. The combat stack shows the order (based on initiative) for combat, and I can see that three characters get to act before the giant but the mage was caught flat-footed and won't act until after. My first three characters need to kill or disable the giant, or somehow buff or protect the mage to survive.
Because of the strict turn order and the known number of action points, I can plot out a course of action with greater depth and precision using a wider variety of tactics (including Charging, Tripping, weapon reach considerations and so on) in a way that would just become a jumble in realtime. The turns and action points make initiative and dexterity more important (and reward their use) and ranged weapons are more tactical (the distance isn't simply closed in the first round before any shots are fired).
I find this sort of situation far more gripping than the realtime combat in NWN, BG etc and it just can't be simulated by pausing.