This is true in theory, but the rapid rate of new characters being introduced means that re-runs are far less common than new "banners". Indeed, some characters released nearly a year ago have never had a rerun. This means that there is a strong sense of FOMO - if you don't have the gems to guarantee the character you want this time around you may have to wait a year or more to get another chance.
Genshin Impact also has a very poor gatcha "rate" compared to many gatcha games (0.6% to get a "5 star" character, and there's no guarantee it's the featured one until your second "5-star" roll).
Albeit, Genshin Impact's pity mechanics are less generous than other gacha. Usually it's about 80-90 pulls for a guaranteed on-banner pull. For Genshin Impact, it's 90 pulls for a guaranteed 50/50 chance at an on banner pull, but if you lose the 50/50 you will get an guaranteed on banner pull after the next 90 pulls. Both guarantees persist across banners.
When it comes to regulating what is effectively gambling, this is actually a pretty healthy set of rules more countries should follow.
(AFAIK there are no such regulations in the US, which is why lootboxes here usually do not come with drop rates, don't give you any way to view your pull history, and almost never have pity mechanisms)