You are correct. I feel like I got info to this effect when I got my visa, but confirmed it on the website of the Home Office anyway.
http://www.ukba.homeoffice.gov.uk/sitec ... dance1.pdfI think the only reason people don't do it is because it's a non-traditional route and they just haven't thought about it, or because they want to have the option to work and live in the
UK for the full two years after their graduation. The tier 5 is definitely a better option if you have to work while on exchange. The tier 4 limits you to twenty hours a month.