Software is the factory. The utility is built right in. You can create lossless copies of the product nearly instantly and for free. It's a logistical miracle.

Exactly. Or at least software is a custom tooling.

A factory in the traditional sense is a process and infrastructure tuned to run efficiently that produces something of value that does not require highly skilled/expensive labor.

It's an economical miracle too. Rare case where producing one sellable product is identical in costs to producing millions.

And international distributuon and scaling is simple too, compared to physical goods.