Right. You have limits because you need to add grain + water which takes up more space than just water, obviously. You need to add enough water to get the pre-boil volume so you can have 5 gallons of wort. You also need to account for grain absorption.
I am limited in some cases as well using a 10-gallon mash tun but not nearly as much as I would be with a 5 gallon. I can do bigger beers but I think if I want to do something like a barley wine, I need to take my 15-gallon kettle and do BIAB, even then it will be tight.
Anyway, if you do 5 gallon batches I would skip a 5 gallon cooler and get a 10 gallon.