Substitutions > Replace All

Since I like to output manuscrupts to ePUB for reading in iBooks, I prefer to have typographical quotation marks—smart quotes—on. Pages 5's parity with Pages for iOS made it more difficult to globally search-and-replace ordinary quotes (inch marks) with smart quotes from the Find & Replace dialog. (The crippling of the Find & Replace even more is a subject for another rant 😉) But it seemed Pages 5 has the answer in its Show Substitutions submenu.

In the help, it says:

1. Choose Edit > Substitutions > Show Substitutions (the Edit menu is at the top of your computer screen).
2. In the Substitutions window, select the Smart Quotes checkbox.
3. Choose a quotation mark style from each of the pop-up menus.
4. Click a button to replace all occurrences of quotation marks in the document, or just in the selected text.

Which I thought means if I have straight quotes and double-dashes, hitting "replace all" or "replace in selection" will convert them to curly quotes and em dashes.

But it doesn't.

So far as I can tell, nothing happens.

Knowing that a lot of this is actually shunted into OS X's Text preferences, I tried making sure the Text preferences were set properly, quit all apps, restarted, opened Pages, opened a new document, typed in a test sentence with straight quotes and double-dashes, and then did the above Help procedure.

Nope. Still nothing happens.

I hope this is a bug and not another "refinement". I reported it as a bug.

This wouldn't matter on documents edited on the Mac, since typing smart quotes and em dashes still work. Moving around from Pages on iOS, however—where getting to the correct quotes is a bit of a chore—I liked being able to do a global "smartify my quotes" on Pages on Mac. But like I said, can't seem to do that anymore—and the Help seems to say that I should, using the Substitutions dialog.

Have you gotten this to work? Have I misinterpreted what the Substitutions submenu and dialog is supposed to do?