This is all true. As you suggest Konkordmusk, we should start using proper terms. Higher gears are lower numbers. An effective ratio of 1:1 means that the engine turns 1 time for every 1 turn of the axle.
The numbers we are talking about in this thread are rear differential ratios. Ratios are read as input

utput. So, if the drive shaft turns through 41 rotations to turn the axle 10 rotations, we have a rear end ratio of 4.10:1. That does not take into account the transmission or transfer case though, so that is not the final drive ratio.