I think that is all a fancy way of saying that Premiere Pro isn't color managed, so if you want to see accurate color in Premiere, you must manually convert video to the color space of your display device -- essentially baking the display's color profile into the media.
I would think that if your AE working space is Rec. 709, you should only use the Color Profile Converter if you need to display/export something other than Rec. 709 from PPro.
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