The only silly questions are the ones we don't ask, right?
You have a good understanding of what this tool does - it can create a new XML file for each row in an Excel file for a single form template. Let's say you had 200 rows in your Excel sheet - your end result would be 200 XML files.
It also allows for more complex scenarios - for example, if you have parent / child relationships in your Excel data.
The product page states that the tool will upload directly to SharePoint - I'd imagine if your workflow kicks off for new items, it would then fire for each XML as it was added. You could test this by uploading an XML file to your form Library (as opposed to saving or submitting from the form), but I anticipate that workflow isn't too discerning about how things get into the library, only that they are in the library.