I hope you're right, and I'd agree that would qualify as a "hardware disconnect". It's a little confusing given the mention of the T2 chip; they do differentiate some specific models which are "hardware alone", and at least imply that the T2 chip does not flip the off-switch on those. I'll have to go dig into iFixit's tear-downs to see if they found anything. For the 2020 iPad, they specifically mention "MFI compliant cases", so we can be fairly certain that one's done with magnets.