Just noticed this feature??

Yes! In normal driving the gearbox will upshift at the rpms that the factory testers decided were the best compromise between economy and engine load when the next gear up is engaged, if you use S and drive it like an auto then the revs will go almost to the rev limiter before the ECU will force an upshift to prevent gearbox/ engine damage. Driving up to sky high revs burns more fuel and puts a lot of stress on the mechanical bits.