That's basically what it does. You can activate Domain Discovery and verify a Domain on an organization, with that zitadel routes users to the organization based on the suffix (ie. email domain)
Thanks for clarifying, I must have missed it in the docs. If you see this comment, I'm wondering if this discovery functionality will also be customizable when the custom UI screens feature gets added?
Instance also has a domain on top of that, but there are plans for a "simple" mode, assuming single org.