Correct. The ring template is a cnc cut, 1/8" thick sheet of plastic. Maybe vinyl? He also throws in a few of the paper rings.
Buy it once, and it's good for a lifetime (as long as they keep making paper reinforcements). I don't apply it like he suggests, I use it to actually mark the circles on the cloth with a thin felt marker, but could see why most people wouldn't want to do that. Pics below.
Never heard of racktight before, but it looks very similar in function. I could see the racktight being more problematic for replacing worn rings though, if I'm understanding it right, since you need to buy more I assume.
Edit to add a video of it in use: