It's great there is far more exposure to this today then ever, and I am sure there will be a happy balance between a powerful cloud platform that adapts to your needs while also protecting your "private" data.
But Apple's approach is not going to win by simply abstaining from collecting user information. You can't implement AI without collecting information for the system to learn, and trying to build that all into a phone will have significant limitations, including the fact that things like the HomePod will be slaved to iPhones because if that AI is not cloud based and only phone based, Apple will not be able to leverage their accessory devices to be more independent of the phone; that might work well for Apple to force people to buy iPhones to support their entire platform, but in the end consumers will tire of a "smart" speaker that is only smart when a phone is paired to it, just like how people got tired quickly of a Watch that was pretty much useless without an iPhone nearby.
I don't think this is an all or nothing issue. I don't believe that the idea no data should ever be collected is correct, but I do feel that Google et. al. have way too much access to critical personal data and without full transparency and user control and having the ability of knowing where and how and WHO this data will be used for and by, it leaves consumers in a state of FUD about it all.
Apple is not helping by fueling this FUD and constantly touting about how safe and secure and private they are and reprimanding their competition. Apple SHOULD be part of the conversation for useful and safe data collection practices rather then acting like some preachy pontiff acting high and mighty that because they could not figure out how to innovate a decent cloud system and so they discredit their competitions efforts in trying to actually innovate and create a powerful cloud system.
Consumers will be negatively impacted if the government caves in on consumer fear and uncertainty and simply bans collection of user data. There is a far difference from some app or platform collecting usages stats and gaining insight into how a consumer uses their platform and adapting to it vs collecting your name, address, financial information and allowing that information accessed by 3rd parties whether on purpose or because of poorly implemented APIs.
It is important for companies like Apple to put pressure on this issue, but if that pressure is misguided and biased around Apple simply self-promoting their own platform because their competition went a little too far with consumer data, that is not going to be a great future for consumers.