The most logical implementation of Apples AOD is going to be limited to time and widgets. If a user has a legitimate security concern about what's in a lock screen widget, they shouldn't put it on the Lock Screen anyways.
Plus when creating widgets developers have the option to hide privacy sensitive data if the screen is locked.

iOS 15 Lets Developers Hide Sensitive Information in Widgets on the Lock Screen Until iPhone Is Unlocked
On iOS and iPadOS 15, Apple is adding new functionality to WidgetKit, introduced last year, that will allow developers to classify information deemed...
