Yes, capital gains taxes would be paid without a Roth IRA. Similarly, if the funds will be used prior to 59 1/2 from within a Roth IRA, then capital gains will still be paid. If there is an early withdrawl, then there is an additional tax penalty. An IRA protects the owner from capital gains, because the funds aren't being used.
I think the point is that the Roth IRA was used in the exact way it was designed and how anyone can use one.
