Your understanding is fine. In many environments, you can still do a lot of damage just by popping a shell and being able to access the database/sensitive environment variables/sensitive code. Getting to root would just be the icing on the cake.
That being said, it's pretty common for non-containerized processes to drop permissions to a low-privileged service account (like nginx running as `nobody`), so it definitely thwarts defense-in-depth in those setups.
In containerized environments, my understanding is their use of namespaces means you still need something more clever than just "patch out the authentication logic in su via the page cache" to escalate permissions in the system to break out of the container. That doesn't mean it's impossible in these exploits (the original copyfail writeup alluded to a second writeup coming to this effect - distinct from dirtyfrag though), but it does mean you're not going to be able to just spam the PoCs floating around.