This is not entirely correct, the search is even more limited. Whenever you summon a retainer (or maybe open their inventory), the game locally caches the inventory contents, and the search uses those cached results. This is only noticeable if you play on multiple PCs or consoles, but it comes up a lot if you do. So if you have a stack of iron ore on a retainer, move it to your inventory, then log in on a different system and /isearch for iron ore, it will tell you that you have double the amount you actually do, because it doesn't know the retainer doesn't have the iron ore anymore.
That said, your overall point (that the game doesn't actually know with certainty that you have the item) is spot on.



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