I agree this sales pitch is not crystal clear.
The way I read it is that your FIRST (and only your first) intra-Europe flight does need to be pre-booked before you depart home on your intercontinental flight, but you do not need to have subsequent flights pre-booked. Or it's possible that you do need to know your entire itinerary, but don't need each flight booked until you want to use it.
Since there’s nothing about price in the promo, things get a bit murkier. I would say that once you have the pass, you may take anywhere from 3 to 16 total flights within Europe. Maybe the “pass” comes with 16 coupons…you must use three and 16 is the max.
Add me to the “dense club” for not understanding how this thing works based on the explanation at the ST site.
Some DL rep ought to be able to explain how this pass works better than is stated there.