It may seem callous but largely yes. It's a tool of terror population wise but the strategic asset is reducing the ability of that area to even govern itself without military support impossible. Never mind continue to produce materials of war.

Most of the high priority target for nukes are not as people think major population centres. To destroy all of Moscow with nukes you'd need something like 20 modern trident warheads.

But a single nuke on an industrial district or a major military base that say, houses greater than 50% of a countries armoured assets could functionally wipe out the operating strength of that asset. The USAs entire F22 fleet operates from one domestic base. Gone. Instantly. You then nuke the primary production facilities for that aircraft and the USA basically can't make another F22 for half a decade or more.