Yeah, it does seem to be phrased such as to imply that.

I can easily imagine a little kid, or a grown adult, declaring a given food or smell or sight "disgusting" without having any objection to its existence. (I can, of course, also imagine a news article in which people interviewed describe someone's immoral behavior as disgusting.)

So the denotative meaning only very mildly indicates a potential for moral revulsion. But used in certain contexts, it does have heavy (heavier) connotations of moral revulsion. I think it's useful to have words for both the physical reaction side and for the moral reaction side, but I disagree with the UD definition in that "disgust" can be more of a generic umbrella term.

So... in other words, use "disgusted" when it's clear, or you mean both. Use "squicked" when it's unclear, and you want to only imply a physical reaction. And use "appalled" when you want to heavily imply moral reaction.

This is all just speculation and suggestion, but I do still hold that the word is useful.