Yes, you correctly define the modern usage.
It used to mean only to set aside from judgement. To neither approval, nor disapprove, but to leave unjudged. And as such was a very useful word for the times when lack of time, knowledge or inclination do not permit judgement. Tact, politics, unwanted imbalance - all these require fence sitting on occasion.
Now the usage of condone implies approval (tacit, at least) or, worse still, it is used to mean unqualified acceptance of events.
Which leaves no unambiguous word meaning set aside from judgement. Even 'overlook' has connotations of disapproval.
( Larry Vest One day at a time, sweet Jesus, FFS., Fri 9 Apr 2010, 12:18, Reply)