Not true, you might just not be familiar enough.

Spend Monero directly (Physical goods and digital services):

-monerica (massive merchant directory)

-moneromarket(dot)io

-kycnot(dot)me

...and Darknet Markets!

You can also buy gift cards with Monero, for just about anything, to fill the gaps:

-coincards

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I was referring to physical vendors (P2P). For gift cards I’d rather buy one from Walmart in cash.

Do you mean buying at physical locations in person? Then yes, very limited. I think that is the case for a lot of crypto.

But there are many places for buying physical goods and digital services online directly with Monero. The gift cards are just a bridge to cover anything else you can't find.