That is indeed the case, and this is what Kafka calls unlimited retention topics. This however hampers schema evolution significantly as you're not allowed to make backwards incompatible changes. Or rather if you allow those changes, every service would need to be able to handle every schema throughout time.

If you make the retention to only several days this would mean you can evolve your schema with even breaking changes. Consumers would need to support only schemas that are "active right now". If the retention period is long enough that it is safe to assume all the consumers have acted on all the old messages you can delete those messages. You would need a mechanism to replay them though, if that data is ever needed again, but it would just be in the latest schema.