^ LOL, I thought that too. No, it doesn't. You can catch all groups, depending on how many steps you have.
Let's see....I have 0 watts, but that's because I didn't go anywhere yet.
So far, yesterday I caught every Pokemon on Rugged Road, including a Magby!
Right now, I'll work on getting Elekid, who I think will be easier to catch.
I think it's cool that most of A Group Pokemon know moves that they know later on, like Sunny Day for Magby which he learns at Level 41. Elekid knows ThunderPunch, which he wouldn't know until Level 28, although I want ThunderShock...
Anyway, I think it's cool your steps don't go leave like your Watts when you connect to the DS, so that you can get the Pokemon you want without having to walk 10000 more steps. I have 8713!
As for items, I got a Stardust, which I didn't expect to find.
Also, it's pretty cool I'm getting 2 team members on my team before I even go to Sprout Tower. Falkner will be a piece a of cake, thanks to this.
One more thing. It's weird that you can find Torchic on one of the routes. 1% maybe very rare, but still a starter in the wild? :o
