You're Correct!

The position that you achieve at the top of the back swing allows you to generate both shot distance and directional control in your golf swing. If you achieve the ideal club position then you will consistently be able to hit straight and accurate golf shots with maximum shot length over and over again. Being able to do this will really improve your play out on the golf course and you will see an improvement as your scores get much lower.

When it comes to achieving the ideal club position at the top of the back swing, you need to consider the club position from two perspectives. Initially, if you are going to achieve directional control from your swing, the shaft of the golf club needs to be parallel to the target line when it is at the top of the back swing. If the shaft of the club is pointing to the right of the target at the top of your back swing, then you will hit the ball right of the target if you swing back down correctly, by rotating towards the target from the ground upwards.

The club will swing back down too much on the inside of the target line and the club head will cut across the target line from in to out as it swings through impact. Depending on the club face position as it strikes the golf ball, the shot will now fly right of target and curve more right, be hit straight right of the target or start right and then curve left, so directional control becomes difficult to achieve from this position at the top of the back swing.

If the shaft of the golf club is aiming left of the target at the top of the back swing, the club head will now swing down with an out to in swing path and depending upon the club face position, you will hit shots left of target that curve more left, fly straight to the left, or start left of the target and then swing to the right. This makes directional control very difficult to achieve and repeat.

The second consideration for where the club is pointing at the top of the back swing is whether the shaft has achieved a horizontal position or not. If the club is short of horizontal then you have not fully set your wrists or you will not achieve the full club head speed that is potentially possible. If the shaft has gone beyond horizontal then you have an over swing and you are wasting energy on extra and un-needed movement at the top of your swing. For maximum club head speed and therefore maximum shot distance, you want to work on achieving a horizontal club shaft position at the top of your back swing.

Pointing the shaft at the ground when at the top of your back swing means you are over swinging the club and moving beyond the optimum golf position to achieve club head speed and shot distance from. You will have to use energy to recover from this position and therefore you will not hit the golf ball as far.

Pointing the shaft of the club left of target will give you directional issues through impact. If you swing back down with the correct body movement from this position you will have an out to in swing path and for straight golf shots you should swing the club head directly along the target line rather than across it.

Pointing the shaft of the club right of the target will produce an in to out swing path from your down swing. This will now give you directional and accuracy issues with your shots and the ball will tend to miss on the right of the target more often than not.