Yes, they do it, and we do it too. It is usually not meant to be hurtful or manipulative. It just feels good and we want more of it. We are under the influence of powerful neurotransmitters, and that creates the Halo Effect that you mention.
So what to do about it? First, enjoy it! Yes, why not? Second, understand what is happening, so as to put it into proper perspective. Third, establish open communication ASAP. Talk about your feelings, what you want from the relationship, what you want to contribute to the relationship. If this is meant to be a LTR, communication should flow easily. If it doesn’t, you have important information.