No, plastics producers knew “recycling cannot go on indefinitely”. So did anyone else who spent a few moments thinking about it.

The same is true of paper recycling or even trying to reuse non-disposable goods. Nothing lasts forever.

That doesn’t mean recycling is not a “real” solution. There is real value in “prolonging the time until an item is disposed of”. Otherwise why bother to exercise and eat healthy - after all that only prolongs the time until you die.