Yup back in the days of pro tools 5 and 6 you used to be able to buy a boxed copy of a plugin in a shop and it contained a card with the ilok authorisation for the plugin on it, you put the card in the ilok and the software would transfer the license off onto your ilok, then next time you sync'd your ilok to your ilok account it would show up in your account online,
Back than not everyone had an internet connection and if they did i guess the were pretty slow and prone to drop out so it was kinda dodgy trying to trust a download of a license to your ilok, but a sync is fine to drop out because you can just re-sync again later.