Is acetaminophen actually medically indicated for pain relief?

I heard from a medical professional I trust recently that acetaminophen (as in Tylenol®) is only medically indicated for the reduction of fever. It has no pain relief benefits at all.

It was also explained to me that doctors only recommend it for pain relief simply because patients seem to expect it and to avoid possible stomach upset from aspirin and ibuprofen. But that if a patient feels their headache go away, it’s probably because they were dehydrated and the water they drank the pills down with helped. Or they laid down/took a nap/whatever and the relaxation helped. But the drug itself had no pain relief benefit at all.

We have a few medical professional Flutherites here and so I wanted your opinion.

Is this whackadoo?