This is 100% true. And yet, for the average person, it's viewed as the default mysterious string that ends a website's "name". Anything else is viewed as slightly questionable, although most people are aware of .org and .net as sometimes legitimate exceptions. I think most people would be less likely to enter their credit card information on a ".biz" domain, even though they couldn't express any accurate reason why that made it less trustworthy. That's significant, even if it makes no technological difference.
people.org people.health people.art
The last two actually imply what they are about, but the .org could be anything.
Trust and faith in the service associated with a domain needs to be built with standard channels like word of mouth, advertising, good business practices, etc.