--> My understanding is that "more modern" version control tools support only the source management part. Is that understanding correct ?
The VCS just deals with the source management part, and it is pointless if you are unable you get notifications of the changes (and after someone implemented the vcs basics there will be no difficulty to provides this ;-) )
--> The mainframe shop I used to work for, had an automated release management tool that did not only control concurrent modifications to sources, but that also took care of running compilers, precompilers, database bind utilities etc. etc., making it our fully automated deployment tool as well.
This is called build automation, and yes, it's very desirable if the best bits of the project get "ready to ship" when someone makes a change but no necessary. You can
do anything you want with the tools mentioned previously (they are extensible).
The continuous integration practice is the interpolation of these points in the way
such that you only have a clean, stable, and noble code in the repositories.
There are the so called CI servers that connects the VC and the BA parts.
check this page for CI http://martinfowler.com/articles/continuousIntegration.html
and if anyone needs a CI server compatible with many BA tools and many VCS
take a look at JetBrains TeamCity
hope this helps