Yeah, that seems to be the case, and that's the only way I've ever used "break," but I did think it could be used to exit any block of code, especially having read it in the book I have. The book is Mac OS X Programming by Wrox, and on page 175 in the "The C Language" chapter, it says:
"break" is not only useful for "switch" and "while" statements; it can actually be used anytime you want to escape a block of code enclosed in braces. Execution is immediately transferred to the closing brace, and continues from there."
Anyways, I guess it is possible that in some older standard of C the "break" statement was allowed in these cases, since I can't imagine the book being out and out wrong, but you're right, it certainly seems to be -- interesting...