Sending bitcoin to a wrong chain is possible only when dealing with BSC and ERC20 networks.
This is absolutely right but having the seed phrase can still be a perfect option for recovery, because importing ethereum wallet seed phrase on the BSC supported wallet will make it possible for the person to be able to spend the coin. But the worst case would be when someone send it on BSC network to a custodial wallet or custodial exchange that does not support BSC thinking it is ERC20. Possibly many people would have lost their coin just this way.
Then why do they even offer those options? If, when withdrawing bitcoin you can only withdraw it using the bitcoin network and not with their made up shitcoin networks, then why even show the made up shitcoin networks if not to deliberately confuse people?
This will actually confuse newbies that do not know much about bitcoin and altcoins. The ERC20 are for altcoins like wBTC, RenBTC and others like that on ERC20 networks, while BEP2 (binance chain) is also similar. But I do not know the reason for binance smart chain, BSC (BEP20) other than reduced transaction fee, but which many people would have lost their coins by sending on BSC to another custodial wallet or custodial exchange thinking it is ERC20. And nevertheless, they are not bitcoin, they are actually all altcoins just like you are implying but pegged with bitcoin.