yep, that seems to be the idea.
anyway, as it's a software config it should be possible to work around somehow. i remember reading something about recompiling certain kernel modules... well, you'll have to research yourself.
alternatively, you can of course always plug your line-out (or even headphone-out) into the line-in. it requires soldering in a resistor or capacitor though. to be honest i haven't tried it myself. but there are a lot of websites about this, so just get googling