This is objectively correct (and the fact drives Fen, a diehard TF fetishist, absolutely mental).
This is even overstating it.
Now this is data from CoC2, so obviously YMMV when it comes to TITS (which doesn't really do user polling like we do), but when we have conducted joint data collection the results are always FAIRLY similar:
The six most-played races in CoC2 are the five races available in Character Creation and also Kitsune, which is an extremely early game all-in-one instant TF you get from a god via the most popular companion in the game. The plurality of people play as a regular human; the majority of people never change their starting race at all. Now that means the majority of people basically don't engage with the concept of TFing at all, full stop (save perhaps some minor corrections they'd have liked to have done in character creation, which is why we just redid character creation to give much more exact starting numbers).
Further more, anecdotally, the majority of people who DO actually use TFs consistently report that they just beeline for the TF they want, chug it until they have their character, and then effectively never touch TFs ever again after that. Meaning, for them, the TF system only exists as an extended character creation system. They're not reading the flavor text, they're not schlicking to the idea of their character changing, they're just pretending their character was always this way from the start.
In other words, from an objective resource-allocation standpoint, transformation systems are a waste of time and the audience would be better served by having a much more in-depth character creation system with more starting races and better control over things like height, breast size, etc.