Aynsley Baldwin, that is all correct information. One thing you have to keep in mind is Avid is not Adobe or FCP and this has nothing at all to do with colorspace like still images colorspace.
This is all about what a consumer TV in your home can handle. What is the colorspace of the device the footage will be viewed on in the end.
We add video “color space” for each time the industry changes. think RGB is a computer monitor, REC709 is your home TV, and now we have 2020 and beyond!
Avid just always assumed back in the day that you were going to output via a broadcast signal. 709 simply has to do with blacks and whites, or Y waveform (luminance) Avid always would output via 16-235 in the Y channel.
We asked you what type of footage you were bringing in so it could deal with the white and blacks levels correctly.