Andrew,
I apologize for the delayed response, but I spent a good deal of time with family over the Christmas holiday.
Great observation & I believe you are right on track. To me, coaching is truly about the partnership between a leader & the employee & as you said helping them reach their potential through that partnership. One word of caution, you will find that there are many definitions of "coaching" out there, so you have to always know the frame of reference of the author.
Ryan