Yes, you feed the body around and there is enough clearance for cutaways..
The extra height is for working on Acoustic Guitars.
If you need to work on acoustics then (as DB will tell you) you will meed to make a 'tray' to support the acoustic guitar body as you will want the top or bottom that you will be routing to be perfectly level so that the router bit cuts evenly and straight throughout the process....also be mindful to follow the grain with the router bit to avoid tear out with an acoustic....also with an electric but its less of an issue!
Gavmeister