"It happens on Google Photos and Dropbox too, they’re just keeping it on the down low."
Yes, it's almost everyone too. Governments are pounding on the doors of these companies wanting easy access to user data. Check for illegal activity, don't E2EE it so they can see it easy. Apple is the biggest kid on the block so they're held to that elevated standard (and Apple is the only one of the big kids that pushes privacy so they set themselves out for extra scrutiny).
"And to be honest, if privacy is someone’s main concern, they shouldn’t get anything with an internet connection"
Yep, complete privacy is an extreme outlier, however, I see it as a trade off of certain levels. If you simply use an iPhone, decline sharing data when an app asks, don't use Google or Facebook apps, have iCloud+, use iCloud mail with hide my email, use Safari with Relay on (or better yet use a VPN), use Apple Pay - just these super easy steps changes the size of your personal recorded data file from a half million pages down to a thousand pages. It's the difference between them knowing 2 places I've gone this week instead of every place I've gone this week including when I woke up, every path I took, what I bought there, who I texted and called in that span, what I looked up online about it etc.
I understand if even that amount fo data is too much. Better to use the Linux phone, use VPN, pay cash. But I'm willing to give up a modest amount of data for what I get. But I'm unwilling to give up my almost every movement I make. That's going to be each person's individual choice.
Peace..