First, while the "Erase after X unsuccessful attempts" feature exists, I've never used it and really don't recommend anyone else do so unless you are exceptionally careful.
Second, my comment was meant in the context of iCloud - if you don't enable the feature as described, Apple may be able to decrypt and recover something, but if you do go all the way to the logical end, yes, you're out of options.
My point is, Apple has already crossed the rubicon of allowing users to lock themselves out of their data. On an iPhone, regardless of auto-erase settings, if you lock yourself out, Apple cannot help you.
Second, my comment was meant in the context of iCloud - if you don't enable the feature as described, Apple may be able to decrypt and recover something, but if you do go all the way to the logical end, yes, you're out of options.