This 100%. Some who are strong test supporters might be surprised that test scores are relatively unimportant for many students in holistic review, even at some schools that require tests.
Agree with your points too.
Adding though that a test required policy does serve to limit applications from disadvantaged students who don’t understand how holistic review and contextual factors work (nor do many of their counselors)…so it’s not a stretch to say that some students who might have been competitive for admission could in fact be ‘hurt’ simply because they didn’t apply, and hence could not be admitted to a school that might be a good fit, have given them enough fin aid to attend, etc.