In many situations, you are right. For instance, the five-over-ones being built in basically every city in the US exist because of a regulation loophole for building wooden structures (that constructing a fireproof barrier between two wooden structures allows you to build large, multi-story apartments with it). They are infamous for burning down during construction because they don't have sprinkler systems yet: https://www.bloomberg.com/news/features/2019-02-13/why-ameri...
Cross-laminated timber has a "char layer" that keeps the other layers from burning through, and is even known for withstanding higher temperatures than steel: https://www.greenspec.co.uk/building-design/crosslam-timber-...