Technically that's correct, but a bit misleading.

You need to bear in mind how limited disk storage was in the 70s and early 80s. When I got to AM systems were booting from 8" floppy disks. That gave you about 500kb, iirc.

The file system had "directories" in this form:

[nnn,nnn]

Where, again iirc, nnn was 8 bits, so 11 111 111, 377 for example. Only 16 bits were required to specify the location of a file.

Filenames, btw, were six characters.