That is correct. But my aim was to have a transponder, and connecting the 2 wires didn't cost me anything. But then, you get what you pay for...
Where I fly (Europe/Alpes), Flarm is first priority, transponder second, and ADSB-out doesn't give you much. Airspace is configured such that you don't mix with heavy metal, and if you do, it's under ATC control with mode S.
Most of the time, it's natural separation - heavy metal don't like looking up at mountain tops :-)