Yes that is correct
It's not just that USB receivers are hard to come by, they are also expensive. More it is worth it to take a new device with built-in receiver.
One more thing - very cheap devices, like the one he bought, do not have electronics that will support USB data reception from external device.
Software itself (iGO, Sygic...) supports TMC reception, it only needs an adequate dll file to recognize the chip.
That is not problem for old receivers. But it can be very big with newer devices.
For example, with some new Mio navi's, a new chip is installed for which the driver is written for its software only. So, iGO does not recognize him in any way.
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