You are correct. I think the concern with this one though is the idea that Ledger can retrieve your seed phrase with a firmware update. It isn't clear to me though that this is what Ledger is offering or capable of doing. I think folks are speculating some from the Q&A. This planned service from Ledger may be a thing where you provide your seed phrase in some manner voluntarily, maybe upon the seed phrase creation phase of setting up a device. I have heard it involves encrypted shards and multiple custodians. I am going to wait for more information.