That is correct. Even with the mute switch set, all alarms will still play. So you must add a "silent" mp3 to your iOS device and then assign it when you create the alarm.
Thank you guys. I don't know if I'd know how to add a silent mp3 to the operating system, but i will try. hard to believe one has to do all that to achieve something that a regular phone has been doing for ever...those iheads!