"Kind of" is right. Here's the thing you need to understand SPECIFICALLY about the MAD bypass. There is a reason they do this mod "in the way" that they do this mod
When it is done, the red and black become ONE LARGE WIRE, now feeding battery power INTO the interior of the car. This is just like a "main feeder" into the fuse panel of your house, or say, from your house to the garage, to run your welder or compressor. And, since the red/ black wires no longer carry the alternator current, they are now "free" to have less voltage drop for supplying accessories like headlights.
This "one big wire" also accomplishes something even more important.........it provides less resistance through the bulkhead. These bulkhead terminals are and were a weak point from the very beginning.
EVERYTHING "in the car"........headlights, tail lights, ignition, etc, essentially comes "off of" that black /red wire pair. So in effect, "yes" they do power your cluster.