Exactly. Switches are outside of the quotes.
The quotes are just there because the space messes up Windows reading of the command. To make C:\Program Files\dominions3\dom3.exe a single command, it has to have quotes.
There are also lots of other great switches. Changing the defaults for things like magic sites, indepts, turning on renaming. Or changing the defaults for map colors and amount of water or mountains. Or turning off music, fades, the credit screen at the end. Changing the volume of things like those mouse clicks.
http://www.dom3minions.com/docs/CommandLine.txt