Another had them come up to a river where the sole nearby crossing was filled with watering animals that would likely be hostile if they got close. They had options: try to soothe the animals and potentially have to fight them, try to swim and potentially fail, or spend time looking for another crossing. The druid said "nope, I cast Water Walking" and the party walked across, bypassing the 'encounter' entirely.
Yes! The Druid is Druiding their way through the encounter. Choices matter because they let you show your character's approach to a problem.