Indeed, the current autopilot implemented has the initial "proportional controller" feedback loop, which only stabilizes the flight vehicle, which is a crucial first step to building a guidance system on top of that.
For a quad rotor this is the most important part, once the feedback loop for the ideal position is in place in order to control the quad rotor you simply change the ideal position using a similar feedback loop from the controller (only a feedback loop if your controllers have servos to provide tactile feedback).