Well, to your point B: for a start, I've already paid Apple. They have much less financial incentive to use my data in ways inimical to me than, say, an advertising company would.

They're certainly not the only ones in this space, but they've been talking about differential privacy recently[1]. So there are possibilities between "everything is on our server" and "everything is on your device".

[1]: http://www.recode.net/2016/6/24/11967188/apple-data-collecti...

> Until Apple does something truly radical (like 100% encrypted information that is processing on-device)

This is exactly what Apple does, which should answer question B.

> This is exactly what Apple does

That is not true, even the puff-piece article admits as much if you read it carefully. This can be proven trivially: is Siri processed locally?

Answering only the trivially erroneous objection, and ignoring two other better-founded ones, does not reflect confidence in your stance.

In the footnote to the point gp was replying, I had said

> Until Apple does something truly radical (like 100% encrypted information that is processing on-device)

You can call it trivial, I will argue otherwise. No one knows outside of Apple how big a percentage cloud-based processing is, but my point remains - Apple's does what everyone else is doing, the only difference is proportion.