It blocks nfc, bluetooth and wifi. The last time I checked, airplane mode left those on, and so did the toplevel “turn this radio off” buttons in iOS.
Google/Apple can in the future announce a "safety" feature that periodically announce Airtag'ish Bluetooth beacons even when in Airplane or powered off mode.
All of the bags and boxes others have posted make the phone unusable, so turning it off seems just as well. Plus, if you leave the phone on, without airplane mode, in a faraday cage, it’s going to die rather quickly while it searches for a signal.
A lot of planes have WiFi, and people are also using Bluetooth headphones. So when talking about being a passenger on an airplane, this seems like a rather practical choice.
Settings for WiFi, turn off; settings for Bluetooth, turn off; does turn them off.
This change was the result of years of supporting people meaning to turn it off in one place or one day, then confused it didn't work at home or the next day.
So now airplane mode is a conditional off (the state machine across cellular, wifi, and bluetooth is pretty decent at doing a reasonable set of toggles), while the settings are off off.
The near field stuff seems to remain available; full shutdown turns that off too.