I did a bit of reading and it seems you’re right, but it isn’t quite as simple. You have to compress more, since you have less potential dynamic range on vinyl (so in practice a digital recording can be more dynamic than an analog one), but limiting is more problematic and an excessively limited recording has to be cut quieter or you’ll encounter issues. From what I read, these issues seem to be mainly unintended distortion and, again, needle skipping.
But your explanation makes sense and I’m not quite sure why excessive limiting would lead to skipping.
From the article:
Evenly distributed power is a lack of hierarchy, isn’t it? How does that article support your point that a flat system doesn’t work?