Yes, this is a fundamental limitation to anything like an airtag. If it’s too good at being hidden and tracked then it’ll be used by stalkers etc., so it’s not allowed to be very good.
I think disabling the beep is pretty necessary for bike use, even if only to stop it beeping away ad infinitum in the garage while I’m at work.
Despite the limitations, I do think that there will be many cases where these are useful. Three bikes were stolen from my garage a couple of weeks ago. If I’d been able to give an address to the police the next day then you never know..