This expression really confuses people and often makes customers give up on their hope on recovering the files off their inaccessible devices.
Let's stop using it and rather say: "The files are not accessible with traditional methods. Please, try an advanced data recovery lab or someone specializing in logic board repairs."
While I agree that "it's not gone" in the absolute, literal sense, it should also be noted for the customer that the costs associated with the recommended course of action will not be inconsiderable.
I've had home users throw their hands up when presented with even the possibility of a multi-hundred dollar bill for data recovery on a conventional HDD. I can only imagine the multiplier involved when an SSD goes belly up.
So, while I like your phrasing better both for its professionalism and its absolute correctness, it's often a distinction without difference when it comes to whether the "data is gone" for that user or not.
I really don't know how, at this point in the PC-as-ubiquitous-tool stage of the game, that it has not become common knowledge and common practice to backup, backup, backup!! How many stories of drive failures, ransomware attacks, etc., etc., etc., will it take for it to finally become almost universal practice to back up one's computer?! (And, believe me, I see un-backed-up machines almost constantly, and when those are new clients they get the lecture). I can't imagine that virtually anyone could not ask around and find multiple people in their circle who have had immense conflagrations of some sort related to their computers if it hasn't happened to them (yet) personally. (And back to those new clients, if I probe about whether they know anyone who's suffered due to any one of the aforementioned types of incidents, almost all say, "yes").