Yes that is my understanding. I am guessing that by your emphasis you think this is too much. Well a couple things I think will interfere with the farming. My understanding is these rewards are character bound (be awesome to hear a Yay or Nay on this) so can't be traded and used by other characters. Also the average time for a dungeon run is an hour (I am sure there are those who have it to a science using a dedicated team that can to it in much shorter time). Regardless if you want to dedicate your play time to running undaunted well cool I guess it is your play time.
More a curiosity. They appear to be BOE:
http://forums.elderscrollsonline.com/discussion/135812/1-5-new-undaunted-gear-rewards