You're not wrong, but also there is a big difference between "apple wallet" and "emergency alerts". There is nothing life or death coming from apple wallet.
Also also, Apple (and basically all devs) have instrumentation to tell them if people are disabling notifications. So if enough people disable notifications for Apple Wallet, I promise you someone in corporate will notice.
I turned off emergency alerts when they had that trump alert, and now they seem to have added "test alerts" as an option.
I suspect crying wolf just leads to people dying because they turned off emergency alerts.