We do exactly the same as you, with one difference. For bath towels we have 2 sets and alternate them, so as we wash one set, we put out the others and put away the washed ones when done. Only replace if they fall apart, I don’t know how liking that takes, maybe 15-20 years? So maybe yes with one set 8-10 years sounds about right?

Kitchen towels wear out faster, harder use and hot water wash with bleach. Bath towels last a long time, cold water wash then dryer.