This is correct! The mods don't have any power on the temp server (in fact some of them may be known to get on and trololol other members). The temp server has two purposes: to test plugins before we update the main server and for a place for members to hang out if they updated their clients.

As always, it is recommended that you wait for Minetown to update before you do so yourself! I have yet to experience anything 1.2 has to offer but I can wait until I can experience it on Minetown.