Close. Let's say the flow of data is a numeric value of 1-10. Data starts at the hdd, 10, to the ram, 10, to the cpu, 6, to the gpu, 6, to the monitor, 6. Here, the bottleneck to the flow is the cpu. What it is not doing is bottlenecking the gpu, whether the gpu can handle 10 or not. It bottlenecks the flow of data is all. The gpu is most likely under utilized, but considering most games even on ultra graphics don't use 100% of the gpu or even the cpu, bottlenecking becomes a moot point. At the end of the day, you may as well say that for a gtx970, 1080p on a 60Hz monitor is a waste, as a gtx970 is extremely capable of putting fps in the 100+ range and you want to bottleneck it at 60?
Bottlenecking is an extremely overused, misunderstood, asinine terminology used to explain the balance or lack thereof between a cpu and a gpu, and I for 1 would be happy if the term just up and disappeared.