Yeah, but most of the time it is used with --no-fallback. I personally don't really see the point of a fallback...I'd rather have it fail on me and know the reason why than to just become a normal JVM app as a fallback.
I assumed that, with fallback, it still did some JVM->machine code translation, maybe I'm misunderstanding how it all works. Also, it still produces a native executable, which is more convenient to distribute than a jar.