No, it looks at the value defined in the line "STRING=..." of the measure and takes actions if they change using the "OnChangeAction=..." Bang.
So in the above code, the value of that string measure is the string value of the [MeasureWin7Audio] measure; which will be the current audio device. Note that the number value of [MeasureWin7Audio] is the current volume level.
When you change your audio device in Windows, the measure will see the change and take the desired action. This refreshes a particular skin OnChangeAction=[!Refresh "Simplon\Visualizer"], but you can use any Bang such as OnChangeAction=[!Refresh] which will refresh the skin containing this measure.
The String Measure was introduced to allow testing of string values especially using IfMatch test, which were not easily performed until the String Measure was added.