No, just their visibility on My Feeds. This means that if resteems are disabled/hidden I'll only see in My Feeds all the post actually posted by people, not their resteems. If it's activated instead will work just like it is now. Does it make sense?
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@ronyxoxo, I've renamed the post as Hide/View that is much more comprehensible now. Thanks for raising that question!
Thanks for explaining it further.