Yes, you are correct. A friendly site structure is one of the fundamental elements for search engine optimisation as it spreads and builds link equity to internal pages and allows them to rank better over a prolonged period. This site structure ultimately measures the internal value that you attach to each piece of content; a performance metric directly applied in the recent Google Panda update. A successful strategy is to link to your most important pages on your site often with a great diversity of keywords. The site structure really looks at sculpting the page rank, link equity, and topical relevance to maximum effect.
The internal link architecture is one of the fundamental and most important elements that you can control on your website, and it’s worth spending a lot of time to determine what is the best approach for your website. Look to install a solution that will maximise your internal links and will pass page rank around your website for SEO, but most importantly, keep your users in mind when designing this site structure.