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Not quite correct, if I remember correctly dry soil adsorbs more water and quicker (by default) than waterlogged soil. But when is been dry for a long time a hydrophobic film forms, causing a temporary delay in water adsorption. I think it can impact flash flooding, but it washes off fairly quickly and then adsorption returns to expected.
I might be reading to much in to the previous commenters use of the word had. But you’re at arguments make a lot more sense today than 30 years ago.
It certainly was fear that stopped Australia from building a nuclear industry in the 90s. It made a lot of sense then. Today, it’s hard to see it anything more as a diversionary tactic.