You’re correct. Bottom line is, if someone takes your CC you have a ticking clock to use your private keys and move it to a new set of private keys.
Discussion
I find it easier to store metal (seedphrase) than a device. Wondering if using hardware just makes things more complicated, harder to secure because you also need to secure the device. Unless you do multisig?
Hardware is to sign send transactions. Hence why many want to refer to them as signing devices as opposed to wallets. Additionally, they do help generate private keys. All depends on what you want to do with your UTXOs.