exactly. Therefore,
1. it does not add detail, only makes existing shadows lighter
2. it does not keep highlights from blocking - actually it even blocks highlights more, since it adds a tiny bit of extra unifom exposure to the highlights too, but this is tiny so it might not matter.
If you get less blown highlights with a less contrasty lens on the same scene, film, processing, postprocessing compared to a more contrasty lens, it only means your exposure is not the same. E.g. the metering got fooled. Or, even with full manual and therefore identically theoretical exposure, a lower contrast lens will let less light through (a tiny bit) which might help not blowing the highlight.
Take this example:
You have a street lamp on the black night background. The lamp produces an amount x of light that is captured buy a say f/2 lens.
A contrasty lens transmits some 99% of the light hitting its front surface and focuses all of this on the image of the lamp, keeping the background as black as it is.
A less contrasty lens, on the other hand, transmits say 90% of the light that hits its front surface and focuses this on the image of the lamp so it gives less exposure to the lamp. Additionally, from the thrown away 10% something like 5% will be reflected back towards the scene, 2% absorbed by the lens' edge or other camera parts painted black, and say 3% will be, after several internal reflections, hitting the film on a randpom spot (thus adding uniform exposure increase). So the lamp itself willl have only 93% of the full light compared to the 99% of the high contrast lens, while the background will have 3% extra.
If you were exposing EXACTLY for the highlights, i.e. to get the lamp the same brightness for both scenes, you'd need to increase the exposure time slightly to bump up the lamp highlight to the 99% but then you'd bump up the shadows' black even further. This way you change exposure - you DO get possibly more shadow details due to the longer exposure but you do need to change exposure time. (Or aperture.) If, however, you do NOT change the exposure, you do get some extra exposure in your black shadow but you do NOT get extra detail there, only a uniform greyness.