Noob question about networking mode

I have an account since open beta but I have played with interruptions. I might have read the dev posts about the new lockstep mode when it arrived, but have since forgotten any important details. And at this time there's something I don't quite understand.

According to the wiki, in lockstep "everything stops moving until the player receive more data". I don't know how to interpret this statement, does this mean that the server will wait for the player in case there is a lag spike?

The reason I ask is because since my recent return to the game, my experience with lockstep has been worse than with predictive. Whenever there is a lag spike, the game freezes of course, but as my computer starts to receive data again, the action does not just "resume", it seems to "catch up" or "do a fast-forward" of the period of time my computer was disconnected. Monsters whizz around the screen until everything is back in sync and the game plays again at normal speed. With severe lag spikes, more often than not I end up dead of course. Is this the way it's supposed to be?

If the answer is yes, then I don't really understand what the benefit of lockstep is. I'm not saying that it should, but if the server never waits for the player, then what is the benefit of lockstep over predictive? At least in predictive I can attempt to move my character or use my pots, and these actions seem to register as soon as possible, and give a chance at survival, whereas with lockstep I'm just stuck watching a Charlie Chaplin movie leading only to the "Resurrect in town" screen.

What am I missing here?