It's not legal to use encryption:
https://www.offgridweb.com/preparation/encrypted-radios-aes-256/#:~:text=And%2C of course%2C if your,walkie-talkies) is illegal.
Without a repeater or a base station, yes, you are correct. However, lets say a group of siblings that live throughout the state, where everyone lives within 25 miles of at least one family member. In that case you could set up your own self managed repeater network.
You can use some radios with your cell phone to send and receive text messages over GMRS. The radio interfaces with your phone via Bluetooth. That's kinda neat. I wonder if there is any encryption.