|Yep, people tend to let posies get "more full", getting their money's worth out of each diaper. The urine still touches baby's skin and spreads throughout the diaper, like a cloth does. But the gel inside the diaper allows for more urine to collect and a trimmer fitting diaper. So actually MORE urine is in contact with baby's skin, not less. And posies don't "breathe" like cloth does. There's a reason it's called "diaper rash". You'll see less rashes with cloth then posies in general.
Usually overnight, you'll want to use a liner or insert to "double" the absorbency of the cloth diaper. During the day, you usually change a cloth dipe every 2-3 hours, but at night it's more like 6-8 before they wake up for a change. That way urine gets absorbed into the diaper and doesn't just sit on the skin. I use 2 inserts for my heavy wetter and we've never had a rash, not once in his 9 months of life with cloth diapers.
Cloth is different than disposables, that is for sure. But most of us mamas believe it's for the better.