Are you read for this? ;)
That is a reasonable take on the lyics if nothing else is known about Townshend. Yes, it can mean that too, but I'll take the actual author's words for what sparked the original song. I'll go into much more detail here for anyone interested.
The song was sparked by three things. One, it was about him being fooled by people who came to him. That was part of the meaning.
The second thing that sparked the song was Woodstock. Not the music, but the audience, whom Townshend thought of as gullible. That view that after Woodstock and the "Summer of Love" everything would be different. He actually said that he felt like spitting on them for being so gullible. Not a good sentiment for his fans, but that is how he felt about many of the "hippies" that came to Woodstock. He rejected that sentiment and wanted people to stand on their own two feet and not look for heroes/saviors.
The song ends with this lyric:
"Yeah
Meet the new boss
Same as the old boss"
He is talking about himself and telling people NOT to come to him, but to be your own boss.
The third part of the meaning was his view that the anti-establishment and anti-war movement of the 60's did not work and people got hurt. Keep in mind that Nixon was then in power. In other words, just after the 60's more conservative leaders were elected by in the US and in Great Brittan. “revolution is not going to change anything in the long run, and people are going to get hurt.” Townshend The "fighting in the street" is as much about protesters in the street as it is about war.
Summarizing: It was sparked by personal experience and his disappointment with people in the 60's "revolution", some of whom came to him for leadership. He was not interested. In his own original innocence, he was also taken advantage of, which he and his family greatly resented. Yes, it was against the war as well, but this was in the context of a much broader and more important cautionary tale against being fooled by anyone or any movement. Rather than being fooled or taken in by anyone or any movement, think for yourself.
Pete Townshend was not your usual rock star. He was not "look at how great I am" or "come to me for leadership" type, but rather an artist who was angry at his family being taken advantage of and disappointed about how gullible so many people (including some fans) seemed to be, and the harm this gullibility causes. We need more like him.
Some of my views are from long ago memories, but some of there are here as well: https://www.songfacts.com/facts/the-who/wont-get-fooled-again