Technically correct, but practically meaningless.
If you hypothetically had a 1 pixel CCD that only had 1 it of resolution i.e. black or white, that would also be "mastered" to that quality, provided you could repreduce that 0/1 state "losslessly".
It doesn't mean it's going to be anything worthwhile to look at. I don't see why this is hard to understand either ... especially in the musical world, but indeed for any photographic media still or moving, lossless is taken to mean "as close to the original as possible". Not as close to something derived from that original that inherently has losses built in even before you attempt to compress it for faster delivery.