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The second part of your statement is not exactly right from my understanding of the license: Someone can take the source code, change it, and release his changes under GPLv3 only, because that is exactly what the boilerplate text allows you: "at your option, use a newer version of GPL"
I was worried that if that applies to my code that someone releases my code under GPL v3 only like it can be done with XOOPS Code.
If that license only applies to XOOPS Code that i modify i am fine with it - the XOOPS Guys have chosen to allow this for their code and all modifications made to it, i just don't want to allow this for my code.