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Yeah you're right, I was simplifying to the point where I was a little mistaken. I was assuming y5ou're network was connected to the Internet and was just a standard residential setup, but this is a much better explanation.
The distinction is important because we are discussing IPv6. A "standard residential setup" with IPv6 would provide the user with an entire subnet rather than a single IP address. We still need a router to pass traffic from the ISP's network to our own network, but we no longer need NAT.