This is exactly correct. This is why I say it would require a whole new OS with no regard for compatibility with current systems.

As long as arguments are typeless and transmitted in a single array, there is no universal way to make programs distinguish between an option and file name that are identical. Full stop. No way. This has nothing to do with quoting schemes.

There are conventions to work around this (like –) but that is at the command level, NOT the shell level. It is not universal.