Yeah, that's what I meant by being pedantic :)
Here's a question: you receive a JSON payload that contains a list. You will then pass this list to two functions, one of them only iterates, another one uses list interface (let's say checks length among other things). Should you mark the argument as a list, or as an Iterable in the first function?
Solely from the code perspective, it's definitely an Iterable. But in my mental model it still remains a list. I don't like it when code deviates from my mental model. Forcibly treating it as an Iterable only makes it more complicated, while not giving anything in return.
Sure, you could say that callee should not have expectations of the caller, but what if those functions are already coupled? They are in the same module, and argument names clearly denote a collection. The fact that in certain scenarios it is "technically Iterable" serves nothing but pedantic value.