I've never put it in that context, but you're absolutely right. And it reminds me of the people who spill their whole life story to you in the grocery line. You can be lacking serious emotional boundaries, just as easily as physical.
But even with that, I think they're still missing the point. That's a different type of boundary. I think the boundaries you're describing relate more to emotional safety. "To maintain my mental health, if you continue to call me names, I will no longer allow you access to me."
I think your example just further emphasizes the fact that there are huge misconceptions and misunderstandings about what holding boundaries actually means.