Using Template Comparison Feature in ACP

[Ohiosweetheart]

Ok at the risk of making myself look stoooopid.....

I've never used this template comparison thingamajigger, so now that I have to, I find it to be damn confusing! I don't want to revert my templates because there are too many changes to re-apply. So, I'm doing them manually.

Someone walk me through this, please?!?

Here is my problem -

PINK: The text in pink is the text removed from the old version (it says). SO, does this mean it needs to be removed from MY version as well?

YELLOW: Text changed between versions. So??? I take it that if I don't simply revert, then I need to change this in my version as well, correct?

GREEN: Text added to new version. Again, if I don't simply revert, I have to add this to my version, correct?

Do I have it right, or am I way off-base? WHY can't they make these things easy??