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That is correct.
The Gen3 only allows you to look up the dictionary definition of a word in the book that you're currently reading. It does not allow you to do a search in the dictionary itself.
ie if you had a book with the word "reduction" in it, you could look up the definition of that word in your dictionary. What you can't (currently) do is search for the word "reduction" in the dictionary itself.
One word-around (read "horrible hack") would be to create a text file containing all the terms in the dictionary, and then do a "lookup" from that.
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