You are right, but if legibility had been the reason for change, Times New Roman is a rather poor choice, even if better than Calibri.
Among Microsoft typefaces, Georgia would have been much better than Times New Roman, especially when read on displays, but even when printed.
There are of course even better choices, but Georgia is a familiar typeface for most people, it is similar enough to Times New Roman and the older versions of Georgia are free to use by anybody.
Georgia is not as condensed as Times New Roman, but here Times New Roman is the anomaly, as it is more condensed than a normal font, for the purpose of fitting within narrow newspaper columns.
From Windows 3.0 to Windows 98, I have used Times New Roman as my main text font in documents, because Windows did not include anything better, but immediately after the introduction of the superior Georgia I replaced Times New Roman with it for some years, until eventually I stopped relying on the bundled typefaces and I have bought some typefaces that I liked more, for use in all my documents. (Windows 3.0 did not have yet TTF fonts, with which the licensed Times New Roman was introduced later, but it already had a metrically equivalent Times font).