That's partly true but there's more to it than that.

Satellites larger than a cube sat tend to have thrusters for orbital trajectory maintenance and to desaturate gyroscopes. But what tends to happen is that since they cost so much to get onto orbit you generally want to maximise the operational life of the satellite by using as much of your fuel as possible to stay up. So most operators just use all the fuel and leave nothing to de-orbiting. And if you put it into a orbit above 600km the time taken to naturally decay due to atmospheric and orbital perturbations becomes long, 10+ years where the satellite is uncontrollable and is a hazard.

New regulations are being introduced to reduce this sort of issue but it's more of a guideline than a law so companies with a commercial interest tend to ignore it.

What this development is really good for is small cubesats which make up the bulk of satellites launched these day by over a order of magnitude. Since they don't normally have thrusters to deorbit a drag shute like this is a cheap easy way for responsible operators to keep space tidy.

This is all assuming the satellite survives it's mission to the point where de-orbiting is desired/option. Many satellites lose control to general wear and tear, radiation damage or debris strikes such as Envisat.