You're Correct!
If you watch todays leading Tour Players play, you will notice that they waggle the club in their hands when over the ball and are preparing to play.
Sometimes this will be done from habit as they always waggle a set number of times prior to making a swing to build confidence. However, the main reason that players waggle the golf club as they are preparing to play is to help to relieve any tension from their hands, wrists and forearms.
Tension in the hands and arms results in the muscles in these areas being used and when muscles are used they contract and shorten. When this happens the distance between your body and the club head shortens and effectively you pull the club head up from the ground. This will now produce the club head to strike the top of the golf ball and produce a very low shot that lands earlier and therefore does not travel as far as usual. So waggling the club before making a swing ensures that the muscles in the hands and arms are relieved of any tension and as a result you will be able to present the club head back to the ball correctly through impact to achieve a crisp strike from the centre of the club face.
Players also waggle the golf club as they are setting up to help them create a smooth flow and tempo to their golf swing. If you start the club from a completely static position, the swing can become jerky as you move the club head away from the golf ball. Waggling the club rhythmically just before you swing back can help to create a smooth movement in the club head as it travels away from the ball, rather than a jerk as the club head moves from a static position. This will help you to time your shots away and improve your tempo for improved consistency.
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Waggling the club creates movement and flow in the golf swing and is not done simply to pose and look great. The more rhythm there is to a golf swing, the more consistency you will experience with your ball striking.
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Players do not waggle for no reason. Everything that a great player does is for a reason and waggling the golf club is no exception. It is done to help the player relax, build confidence and set a smooth tempo in the club head moving away from the golf ball.
Sorry Try Again! - See Explanation Below
All great players waggle the club before they play to promote relaxation in their muscles, build their confidence in their routine because they have followed it exactly and to encourage a rhythmical tempo to promote a great strike.