7.2.F. (7F.) FORMAL PARAMETER CLASSES
There shall be three classes of formal data parameters:
input parameters, which act as constants that are initialized to the value of corresponding actual parameters at the time of call,
input-output parameters, which enable access and assignment to the corresponding actual parameters, and
output parameters, which act as local variables whose values are transferred to the corresponding actual parameter only at the time of normal exit. In the latter two cases the corresponding actual parameter must be a variable or an assignable component of a composite type.
7I. RESTRICTIONS TO PREVENT ALIASING
Aliasing (i.e., multiple access paths to the same variable from a given scope) shall not be permitted. In particular, a variable may not be used as two output arguments in the same call to a procedure, and a nonlocal variable that is accessed or assigned within a procedure body may not be used as an output argument to that procedure.
7I is important (in the mutable case), and solving the problem that bought forth this rule is the core idea behind Rust.
7F draws useful semantic distinctions: Output parameters are return values. Input-output parameters are mutable references. Input parameters act as a copy or readonly reference – which are equivalent if you can't mutate or observe mutation through readonly references.
Your complaint is that Rust draws a distinction between whether input parameters are implemented via a copy or a reference, but Rust draws many more distictions here – arbitrarily many so, because it's part of the type system. This makes the system both applicable everywhere instead of only in function parameters and allows expressing more different semantics.
For example I have a hard time seing how one would, while following the Ironman requirements, distinguish parameter whos type is "dynamic array of elements of T" from one of type "dynamic array of elements of type mutable reference to T". Likewise you can define a record that holds a mutable reference and an immutable reference, or define a new reference type (such as a reference counted pointer) without new language support.
I said that passing a copy and a readonly reference are equivalent. However, in Rust there are no readonly references. Rather, there are non-aliasing references, which allow mutation, and aliasing references, which by default don't allow mutation – but types can make use of interior mutability to allow mutation through aliased references according to they rules they need. For example you can access data protected by a mutex if and only if you hold the lock, which means that even if other references to the mutex exist, there are no other references to the inner data.