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Yes technically you are corrdct. It's my understanding roots grow out of the rhizome.You don't need roots on the rhizome @Gordo33 - you can cut the tiniest piece and plant it. As long as it has a growing tip it will grow.
EDIT: Let me clarify - the rhizome IS the root. But you don't need any of the thin root growths that come out of the rhizome.
http://nelsonwatergardens.com/how-to-repot-your-hardy-waterlily/
this is the site I used to learn how to divide hardy lilies. They have a great you tube video