This is the big one.
Remember there are regulations regarding soft furnishings in many industries. Aerospace, Automotive, Hotels, Care homes and domestic use, all have standards requiring certain flame resistance (Not the term resistance not proofing)
As you correctly say, everything will burn given teh correct temp. The idea is to limit these materials from becoming additional fuel too quickly. Even wood (lumber) can be pressure treated
There are products mainly used by live events, where you can spray the soft materials directly. The principle being, is that if you remove the heat source they will smolder or self extinguish - and have a fire resistance of a certain time (just like a fire door). It's generally not teh materials that combust, but the gasses they give off initially.
Older members will remember the changes to domestic furnishings in the 60/70's? To prevent them catching fire when people dropped cigarettes or fell asleep smoking in bed.
In principle then if say a battery or charge caught fire, on a countertop near a window with curtains, then if teh correct materials were uses, while they'd char they wouldn't coombust adding additional fuel to the fire
The flame retardant for soft furnishings does deteriorate with age (approx 5 years) and certainly with washing/moisture. In the Theatre industry the municipality test shows regularly on a fire inspection (blow torch) but you can spray treat. In automotive and aerospace, the fabrics are presumably different.