That seems like an overly cynical explanation. There are many reasons why you would want a service instead of a library:
1. Even if the service is just a CRUD API, then you can isolate the storage layer from external users. If you just a have a library then every application needs to be able to connect to the DB.
2. You can protect mission critical resources through rate-limiting in a way that is way harder with a library.
3. Even if those are not problems, if someone has a DB connection then there is nothing really stopping them from just going around your library entirely. So random service X gets popped by an attacker. Now they can execute arbitrary queries against your DB. With a service they are still constrained to the operations exposed through the API.
4. You have a lot more freedom to change internal implementation details for a service. Need to change your DB schema (or migrate between postgres and mysql) then you can hide that behind the service interface. If you have a library out there then you have limited control over when people take version updates and it is virtually impossible to synchronize the update across all consumer of said library.