Yes, you answered this question, which is technically incorrect as it would be based on the circumstance stated by LCDR:

Now if the user missed this opportunity and decided to upgrade the computer...

But then you said this...

Which is not correct.

Even after the 1 year is up you still have a retail version of Windows 10. The licensing is the only thing that is not the same. The full retail...

LCDR is correct. The free upgrade is exactly the same as the retail version. The only difference is the licensing. That's it.