That "kind of" helps, but hackers getting into the account can get around it. Or, if they're fast enough, they usually will get into the account while you're sleeping and not checking email.
I can't tell you how many stolen domain names I've recovered that had this "feature" turned on.
If you're thinking that your registrar having this email notification feature gives you peace of mind and that it will stop someone from stealing your domain, you're sadly mistaken, unfortunately.
Many domains are stolen because someone hacked into the email account. And if they don't change the password on your email account, then they're going to just delete those notification emails. You'll never see them.