But Apple chooses to implement things in ways that make it way harder for them to do this. Eg Touch ID and facial recognition on the device only, not in the cloud.

Fingerprints and data for face unlock aren't stored in the cloud on Android either. Wouldn't make any sense anyway since I surely want to unlock my phone without Internet access.

Yes, but having a different device recognise you or having the algorithm get better faster would be nice.

That's because of the horrible press they'd get if you couldn't unlock your phone without cell service, or if it took ten seconds when the network was spotty.

We must remind ourselves that Apple is a closed social network based on hardware whereas lets say FB is software. So Apple plan to monetize this walled hardware/software garden for its own needs

What are you talking about?

Can Apple phones only call or text other Apple phones? Where is the 'buddy list'/graph/contact database that can't be easily ported to another social network?