I agree. Although in this specific point, I would say we always had depletion (since the most basic microorganisms, after all otherwise life would replicate until it faces depletion limits; all the way to our close primate relatives and throughout human history; food depletes locally which drives competition), but rarely faced degradation or permanent depletion.

I'd say degradation involves a lasting depletion or lasting damage (potentially permanent until restoration efforts happen) to the environment's output and ability to support life. Permanent depletion is what can happen to e.g. shallow mines and fossil fuel deposits.

I think I'd agree the legal system was created mostly for the former, depletion, and only recently had to contend with degradation and permanent depletion. I feel like we still struggle collectively to coming to gripes with permanent depletion.

Permanent depletion is also usually the result of shortsightedness or a competition gone awry. Famous case where nobody wants the ultimate results but people may selfishly march towards it (tragedy of the commons).