I am not sure any of it makes real sense, it's just a variation of the "why" I picked up somewhere (that it's both).
But yes, that's easily worked around in the manner people brought up already (I did think of duty free bottles, but not camera cases, that is a good one).
Alcohol is flammable around 40%. French cooks aren’t using overproof brandy to do flambé.
Gunpowder doused in alcohol is, very famously for people interested in the history of rum, flammable if the alcohol is around 57.1% or higher, but straight alcohol/water without gunpowder is flammable at a lower strength than that.