You are, of course, correct. It's been a while since I looked at Amiga encoded disks.

I guess using the 765a makes the software a lot simpler (it just requests data at a particular location) but means it's much more limited because of it.
The Amiga I believe is basically just Paula chucking out bits which then have to get decoded, isn't it? I.e. great for copy protection, not so great for ease of use (hence Kickstart routines).
The usual way for copy protection on the 8-bits - and I'd guess the PC too - was to have illegal sector numbers in the sector headers. So the first track may have sectors 1,2,3,33,4,5,6,7,8,9 or something, which of course the DOS would think was an error.
Equally, nasty copy protections could do things like have sectors 1,2,3,1,2,3,4 on the disk which could never be written normally, but you could read all the sectors and check the existence of two different sector 1s, two sector 2s, that sort of thing.
Is this OT now? Sorry.

Edit: If you need to run old PC games, get a bridgeboard! You need a big box Amiga though (unless you're happy with CGA 8088/286 games

)