Yes they do the mixing, kneading proving etc. I had one but I got fed up with the paddle hole in the base of the loaves. I would get another one now if I had space as there are more interesting bread mixed and flours available
I`ve used them for years. I make my own seeded bread, slice it then freeze it. You just put the ingredients in and the machine does everything. I don`t like the dough setting very much as I find it leaves lots of dough stuck to the sides (that's with shop bought focaccia mix so it might be OK with other breads)