> The machine I'm using to type this comment is also a finite state machine, as due to having non-infinite memory, it also cannot count arbitrarily high.
Right. And if you really want to push that argument further then there are numbers for which your machine can't decide whether they are prime or not. Most of them, in fact, i.e., for all but a finite number of primes and non-primes, your machine can't tell.
For the theory of computability, this is not a useful model. Neither for complexity theory. Statements like "My machine can sort in constant time" which is arguably true but not useful either. It only holds up to a certain collection size which in a sense makes it both nonsensical and useless. Even concepts like the Chomsky hierarchy with context free languages being one of the prominent components make little sense as long as your computational model is finite state.
Instead, we model them as unbounded, to be able to differentiate between classes of computation problems as well as reason about complexity. The Turing Machine is one of the simple and elegant models, but there are others for other purposes.
I wish that basic education about the theory of computation would stress more why theory treats things like this, to avoid this kind of confusion. (And then people would need to take those classes as well, and not just claim they can write React apps just fine without a degree.)