It *preserves* white space --- such as your widely-spaced author names. So the name would still display as-- B E N . J O N S O N
but would be allowed to wrap if too wide for the screen, instead of running off the edge.
Try a test of a long sentence with your wide spacing, using both settings, and see what happens.
It is kind of a toss-up if you would prefer the words to disappear off the edge, or to wrap at some random point without a hyphen. It seems like we are always having to choose the lesser of two evils.