What is Install-Paths-To in WHEEL file?

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Hello list.

I'm trying to understand the contents of Wheel files. I was reading
https://peps.python.org/pep-0491/ specifically the paragraph that
states:

Install-Paths-To is a location relative to the archive that will be
overwritten with the install-time paths of each category in the
install scheme. See the install paths section. May appear 0 or more
times.

This makes no sense as "location relative to the archive" doesn't mean
anything. Archive's location  (did you mean filesystem path?) may not
exist (eg. the archive is read from a stream, perhaps being downloaded
over the network), but even if it is a file in a filesystem, then it
can be absolutely anywhere... If this paragraph is interpreted
literally then, say a command s.a.

pip install /tmp/distribution-*.whl

that has Install-Path-To set to "../bin" and containing file
"distribution-1.0/data/bash" would write this file as "/bin/bash" --
that cannot be right, or is it?

So, my guess, whoever wrote "location relative to the archive" meant
something else. But what?  What was this feature trying to accomplish?
The whole passage makes no sense... Why would anyone want to overwrite
paths s.a. platlib or purelib _by installing some package_?  This
sounds like it would just break the whole Python installation...

Thanks!