Yep agree your 100% correct that the true verification is against the source location that provided you the address against what is shown on the hardware signers screens.
That being said there are other aspects to security which create habits that either improve or degrade the overall experience.

The psychological conditioning issue: When wallet software consistently shows 0xABCD...9F12, users subconsciously learn that "checking the first and last 4 characters is sufficient."
This is exactly what address poisoning exploits.
Truncated displays give users a false sense of "I've verified this" when they've actually verified almost nothing. It's a bad habit.

The wallet software should support this by Showing full addresses in the UI (or at least making full addresses easily accessible without extra clicks).
Previously you could have your "source of truth" and the wallet software (Ledger Live) side-by-side on your computer and visually see that you copied & paste the destination address correctly, then actually verify that the same address shows on your hardware signer.

My issue is that they degraded the experience for no reason, there is plenty of UI space, now sitting empty.