exactly. with the exception of spellcasting, all of the class features for levels one and two for candle caster get scrunched into level 1. 3&4 into level 2. 5&6 into level 3. etc. It's more balanced.
There are a number of prestige classes that become tolerable by half doubling them. Animal lord is downright passably playable with this. Most of the things in dragon compendium need this to be actually playable.