That's correct, Wardrobe Wizard will not add the morphs but it will convert clothing to a morphed version of any supported figure. Because Wardrobe Wizard is so quick, what many folks are doing is converting clothing on demand. This saves a lot of hard drive space compared to storing a clothing item full of every conceivable morph you may every want in the future, (and remembering that they are there). If you wanted to actually add morphs into the clothing you could use Wardrobe Wizard as part of the process.