Feedback "Alpha Is Transparency" and color dilation clarification

I think the "Alpha Is Transparency" toggle on textures is not super clear. I always thought this an oddly named toggle.

Are we saying "Alpha is completely transparent so dilate the color to hide edge artifacts?" I think so.

But if the alpha is only semi-transparent (not 0) then it seems the dilation does not work?

Also the texture preview window with this toggled shows the alpha channel as transparent even when you click the RGB button which is kind of odd. It could show you the dilated color or have an option to see it.

Otherwise the lack of runtime options for the same thing limits importing user-made images with cutout effects if you do not make custom shaders to repeat this I believe. Too expensive?
Only found method for this is a free asset Adv. Edge Padding | VFX Shaders | Unity Asset Store