wrong.
you can access local storage (iPad's storage) too.
look at the locations on the left..
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I would exercise some caution over this. If all apps are sandboxed, it is unlikely this app will pull all those files in and even if they did, other apps would still not have access to them - I'm assuming. Those locations may just related to cloud files that are also downloaded to your device as opposed to files that are only on your device.
My wish would simply be for a central documents folder that all apps can share but you must give them explicit permission - much like how Photos works today. Any photo app can share access to the Photos but the user must give permission to that app first. If we had similar for any file type, it would be great. A single place to store a single copy of say a PDF that the likes of iBooks, PDF Expert and Good Reader could access instead of 3 copies of the same file - one in each app.