It's not just theft protection though. Bitcoin provides protection from forms of fraud which specifically use mechanisms in a currency or transaction system, like chargebacks on PayPal (a ubiquitous form of fraud), or fake Western Union payments.
Chargebacks may be a mechanism of fraud by purchasers against sellers, but they are also a tool for addressing fraud by sellers against purchasers.
I agree with your interpretation, but bitcoin eliminates that kind of fraud, while requiring you to protect against theft.