No, actually, most phones did not release an update like this, deny the situation, and then also refused to let people purchase replacement batteries.
The issue is that Apple did this update, did not tell people about the whole thing, however you want to describe it, and then also did not allow people to buy replacement batteries.
That's only one possible explanation.
Imagine two phones that can both draw 5 watts max. Phone A has a battery that can supply 5 watts brand new, and phone B has a battery that can supply 10 watts brand new.
It's true that phone A is "getting the most out of new batteries", and phone B isn't. But phone B isn't "limiting itself to the performance of an old battery". The 5 watt limit is there for efficiency and heat reasons, and it just so happens that the battery is never the limiting factor.
That makes the job easier! Just cut the battery in half. Let's say the original battery could handle 5 amps before the voltage drop got too bad. If a half-size battery can handle 4 amps, and you put in two of them, now you can handle 8 amps.
Manufactures can hide it any number of ways, but a new battery is always better even if your phone is exactly 1 day old. That’s what continuous degradation means.