At least within my corner of the business world (and not just "the internet"), it seems this is common knowledge among lawyers.
My guess is that, sure, would a court throw out a trademark? Maybe not, but the law works on a fine line between actuals (precendent) and hypotheticals, and it's just cheaper to issue a C&D than it is to fight a prologned legal battle about predcedent.
Also, it's interesting you mention Frisbee. There's a term for that: "genericide," and it's the term used to describe that exact scenario. Frisbee is one brand that didn't actively protect against trademark erosion and now we call every flying disc a Frisbee. Retrospectively, Frisbee might have wished they'd sent more C&Ds. Nintendo is one brand that has actively protected brand erosion, which is why we don't call it a Sony Nintendo.