Right- the lighter color is a part of it. That's by reducing the maillard reactions. If you're a cook you know about maillard reactions- the browning of toast, for example.
Reducing the maillard reactions by not having a sugar-heavy boil is a great way to lighten the color of the beer (most extract beers are darker than desired), and reduce that weird "cooked extract taste" present in many extract beers.
Extract has been processed by the manufacturer, and doesn't need to boil but many people choose to at least add it to hot wort at the end of the boil to pasteurize it.
Adding about 1 pound per gallon of water boiled at the beginning means that there are some maillard reactions, but not as intense as the lowered sugar content means a boil more like an all-grain batch of a similar beer.