Yes, you setup the wireguard configuration to connect to the peer using the domain name and once connected, the network assigns a local IP for the connected peer that is valid on the natted network. I use this kind of setup to access my NAS system when I am traveling or working away from home.

You don't need to punch through a NAT when you have a bounce server. Both sides are already connected to the bounce server and all interaction between those peers is done through the bounce server. Thus, the peers don't need to communicate directly... so you don't need to do any NAT punching.

That's what makes this method simple... with the downside that you need a publicly exposed intermediary. But it is vastly simpler to setup than STUN.