Yes? Most use cases for Thunderbolt are external NVMe drives or laptop docks, those are fine with short cables.

The alternative of getting rid of USB-C plug compatibility and requiring an expensive optical assembly and fragile optical connectors would kill Thunderbolt. It means it’s gone from laptops where the space and cost is too high, it means it’s gone from iPads where it won’t even fit, external NVMe drives will settle for USB due to cost .

Active optical cables ARE part of the standard for those who need it.