Not exactly "physical" in the same sense as a normal Rubik's cube, since there isn't any physical restriction that makes illegal moves of taking it apart and putting it back together anymore difficult than performing legal moves.
The magnets are pretty complex, I am not sure if that's true. (I can see the imprints of at least four magnets per side.)
The puzzle can be assembled to invalid states, so yes it does come to the user to ensure that only allowed or "canonical" moves are used.