Yeah this! Linux is just the Operating System aka Kernel. Your distribution is the "User land" aka "User space" etc. So your distro is who packages bootstrappers, firmware, system applications like systemd, and regular user applications like bash, cd, ln, tar etc. Then you have your Desktop environments like Gnome, XFCE, and KDE for example. Under them are usually some terminal server like XServer or Wayland.

The Linux kernel is almost useless by itself, there's nothing it can really do without a bootstrap and an init process. Then something like bash can be started, connected to the terminal, and allow users to do things.

Your distro just packs it all up into a bootable, and actually usable system with tools you usually want to use.