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Ray_O already mentioned (long before you, Mark) that the wheels need to be firmly seated onto the bolts/studs with the nuts so that there is no play in the wheel before lowering. You're simply repeating what he already said many posts ago.
The firm seating can be either finger-tight as mentioned in the Camry manual or snugged a bit more with a turn or two of the lug wrench before lowering the car (as "Auto Upkeep" prefers).
Then the full torquing can be accomplished with the car completely lowered onto the ground (Camry manual) or with the car's tires just barely touching the ground ("Auto Upkeep").
Mark, if you had read more carefully, you would have understood that the logic we're wondering about is /not/ the initial seating of the wheels before lowering. That is a simple given.
The logic we're wondering about is Auto Upkeep's recommendation of fully tightening the wheels with the car's tires just barely touching the ground (*without the car actually being fully lowered yet*) /versus/ the Camry manual's recommendation of completely lowering the car before fully tightening the lug nuts.
I guess it takes careful reading to make this fine distinction. Mark, you might want to try harder next time.
I recommend you re-read the steps I posted from the "Auto Upkeep" book.