My laptop lets me limit how much of the battery will charge before reaching full charge:

At first, I understand what the intent is. I know that overcharging a battery will result in degradation of its charge capacity. However, with smart chargers these days detecting a full charge and turning charging off when reaching a full charge, wouldn't this mean that overcharging is impossible?
Furthermore, my laptop appears to be able to do this (as indicated in the screenshot below). Therefore, am I getting any benefit to having it turn charging off at 80% or 50% capacity, rather than letting it charge to 100%?

My thought is that perhaps those settings are more useful when the battery is already degraded. Let's say it can only hold 90% of its original charge. Would the laptop try charging it to 100% even when after 90% it cannot hold any more? Perhaps these limits are more useful, then, to drop the full charge limit so that overcharging doesn't happen and further degrade the battery even more quickly?
Or am I missing something, here?