Yes, fair, and that matters if the discussion is "I want to buy someone's physical copy of a game released a few months ago that they are finished with". Digital distribution with robust hardware security does in fact completely destroy that market, though notably Switch and Switch 2 physical games tend to keep their value, suggesting that maybe it has less to do with physical media itself and more than the second hand market follows the pricing set by the digital marketplace, and consumers know that Nintendo doesn't really do discounts, even years later.

All that said, I think my main argument with respect to emulation and root access was less about individuals having that access, and more that so long as someone gains that access even through extraordinary measures, the games can be dumped and distributed, at which point true ownership becomes possible (even if it takes a while for them to become playable on emulation or hacked hardware).