you are correct. You do not HAVE TO base it on distributer positioning. IT IS EASIER if you do.

you can drop it in anyway you want to, but because it is a computer controled car, it specifically requires #1 to point to a specific tower on the distributer.

you cannot just move plug wires around to get the correct firing order like the older cars. you will have to turn the distributer to line up #1 after you drop it in.

It is far easier to take a moment to figure out ball park where it has to be and drop it in based on that, rather than having to line it all up afterwards.

This is just my sugguestion. Perhaps someone else will come along with the proper service manual for a 96 and see if it is different.