You're correct. C&P is generally considered a better value than regular awards, though it does require spending some cash.

It sounds as if you understand things well and maybe are thinking it sounds too good to be true.

There are some drawbacks to C&P awards. They cannot be upgraded in advance with additional Starpoints. (A variation might be coming to allow something like this, though.) And availability of C&P awards is not guaranteed. Just because a standard room is available for Cash, the hotel does not have to offer a C&P award for that room. (But the hotel does have to offer the room as a regular award.)

If C&P awards are available for your stay in Europe, go for it. But it would be a good idea to book them soon. Due to the weakening US dollar, many of us expect the categories to increase again within the next month at many European hotels.

There are some threads out there that discuss C&P in detail. Here's one.