In theory, to obtain a color managed workflow, we would like each device to calibrate/profile itself. So the monitor should do whatever is necessary to display RGB values from a file with absolutely accurate color, and the printer should do whatever is necessary to print RGB values from a file with absolutely accurate color. Of course absolute accuracy is not always possible, since gamuts do not completely overlap, but that is the ideal. An application like Photoshop is then responsible only for producing files with correct RGB values in a properly tagged color space.
The same result can be obtained by letting an external application change the RGB values that it sends to the printer, while telling the printer it is no longer responsible for color management. For this to work, the external application must know the characteristics of the printer. This breaks the paradigm of device-independence and seems rather backward. Why should Lightroom know how your Epson printer renders RGB values into ink colors better than the printer itself? Nevertheless, this has historically been the case, and most of us have gotten used to working this way, because it gave better and more reliable results. If printers are finally becoming capable of handling their own color management, it would be good to be able to go back to that model.
Maybe a contrived example would help. Suppose your printer prints RGB=(128,128,128) with a blue tinge when color management is turned off. (Assume the color space defines this color to be neutral gray.) You create a printer profile to compensate for this. The profile says something to the effect that in order to print (128,128,128) accurately, the printer must be told to print (128,128,112). That profile can be loaded into the printer, with color management turned on, so that when it receives (128,128,128) it attempts to print (128,128,112), which comes out as neutral gray. Or the profile can be applied by the application, so that it translates (128,128,128) into (128,128,112) before sending the image to the printer, with color management turned off. The end result should of course be the same.