How to use skip blanks feature in paste special option?!?

There exists a lot of confusion among excel users on usage of "skip blanks" feature in paste special. They expect the skip blanks to filter and paste the non blank cells but, skip blanks retains the original value of the destination cell if the corresponding cell in the source cell  is blank.

Let us understand this with an example. Consider two columns A and B with integers as shown below. The cell A4 in source column is left blank.

Now, copy the values in source column, i.e. from A2 to A7. 

Select cell B2 and right click and select paste special from context menu. Check 'values' and 'skip blanks' from paste special popup window and click OK. Now all the values in destination cell changes except for the cell B4 as shown in the picture below.