What is the difference between transcript TXT and subtitle files?

What is the practical difference between a transcript TXT file and subtitle files like SRT or VTT?

The way I understand it:

1. TXT is readable transcript text that is useful for search, notes, copy/paste, and review.
2. SRT and VTT are timed subtitle formats.
3. A YouTube video may or may not expose transcript or caption text.
4. Automatically generated captions can contain errors.
5. A transcript can help you find a passage, but important quotes should still be checked against the video.

If someone only wants notes from a video, TXT seems enough. If they need timed captions for playback, SRT or VTT is the more relevant format.

Is that the right way to explain it to a non-technical user?