Without trying to give my own interpretations and not being at a technical level high enough to comment and help/accurately verify your words, there was a similar thread where someone mentioned melting chocolate, I thought it was a good metaphor.

I heard a pod where someone mentioned another metaphor for UTXOs. Was like this. Your wallet is pretty much like a physical wallet, you can have many wallets or just one, if you find that more practical. In each wallet there's probably different places to store bills and change. Paper bills and loose change (coins) are like your UTXO sets, I guess the place where you find them is like an address.

Things is, like physical cash in your wallet, you transact with denominations (your UTXOs) and usually in this scenario you get change. Exactly the same.

So, I think you are pretty much right.. without attesting to technicalities.