ALT and ILS Glideslope capture logic

[snapshot21]

During ILS approaches where you capture the LOC early, I noticed that the plane holds the current altitude it is at when it captures LOC.Regardless if you have armed a lower selected altitude and the glideslope is still 2 dots above.

In that situation, should it not continue descending into your selected altitude while tracking the LOC, capture your selected altitude, then wait for the GS to come alive and descend along with it?