Supposedly the people doing this at scale (for grey imports?) even de-solder the eSIM module and resell it, but I have my doubts about that part of the story.
I'm not sure if iPhones still have a physical module; it would make a lot of sense for Apple to combine the eSIM implementation with the payments secure element (I think they hold some patents to that extent), but I'm not sure if they already do that.
I think this is why Apple releases the latest iPhones with physical SIM trays in China while the latest iPhones in North America are eSIM only
It's US that's esim only. Canada and Mexico still has physical sim + esim option if you're willing to drive across the border.
https://www.apple.com/iphone/compare/
There’s no free WiFi without requiring a phone number. It allows the government to connect internet users to real identities.