OK, you need to understand that when you're using the Motion type of 'Dynamic', that the name in the dialog, 'Specify Orientation', means that you can LITERALLY 'specify' an orientation by manipulating the Drag Handles, as you're prompted to do in the Que line where it states...
"Drag a handle or select a handle for direct entry..."
The reason that the Point Constructor dialog is ALSO available is because when the 'dynamic manipulator' is first displayed, the ORIGIN 'handle' will be pre-selected and you will see 3 input fields next to it for X, Y, and Z as well as the Snap Point options will be active in the Selection Bar so that you can quickly select a destination point if you wish to move either the handle, (if the 'Move Handle Only' option is toggled ON) or the selected object(s) (if it is not). As is the case with other functions where the Snap Point dialog is active, there is usually an icon in the relevant dialog which will take you to the Point Constructor dialog for a more extensive set of point options. Notice that if you were to select one of the 'Vector' Drag Handles that the Point Constructor option changes to the Vector Dialog, or if you selected one of the 'Rotate' drag handles that there would be no option at all since we don't have a special 'rotate dialog'. The only 'Orientation' implied is of the direct manipulation kind. The extra dialog option seen here is just that, an option to augment the on-screen inferred selections depending on whether the system is expecting you to select a Point or a Vector.
As for utilizing the CSYS Constructor, these dialogs are available when using the Motion type of 'CSYS to CSYS'.
I hope this helps explain what the terminology is referring to and what the intended use and behavior of the various options are.
John R. Baker, P.E.
Product 'Evangelist'
Product Design Solutions
Siemens PLM Software Inc.
Cypress, CA
To an Engineer, the glass is twice as big as it needs to be.