"I take it to mean that with my 1:10 ratio, 3 knots with the model will mean 30 knots at full size. Am I reading this correctly?
Anyone?"
That is incorrect, the proper answer for displacement type hulls is that the big boat and the model are equivalent only if they have the same "speed-length ratio" .
For displacement type hulls this is NOT a linear relationship, but rather it is based on the square root of waterline length. For your big boat to model parameters, the proper ratio is scale ratio is squareroot of (1/10) which is 0.316. Thus if you are going to simulate a big boat speed of 10 knots, then the 10:1 scale model hull needs to be driven at 0.316 * 10 = 3.16 knots.
As it turns out for your particular parameters the scale model speed to represent the big boat speed of 30 knots would be having the scale model boat traveling at 0.316 x 30 knots = 9.5 knots for the model.