Bigshan,
I think you are correct. The last paragraph in the link you provided is this:
“How much in I bonds can I buy as gifts?
The purchase amount of a gift bond counts toward the annual limit of the recipient, not the giver. So, in a calendar year, you can buy up to $10,000 in electronic bonds and up to $5,000 in paper bonds for each person you buy for.”
This indicates that the limit is for the purchase and does not mention distribution.
So those thinking they can buy 30 or 40K for another this year and then distribute 10K per year , this indicates that it will not work for you.
Buyer Beware, get a confirmation from Treasury or a tax lawyer.
Best of luck.