A good example is the image tagging in Photos which has been there for quite a while, if you search for a term in your images folder it'll show you images they classified with that term. This applies regardless of if you are using iCloud or not as the classification is performed locally, keeping your images on your device as opposed to sending them off to be classified on a server somewhere.
By providing more On-device intelligence Apple believes you may prevent or reduce that initial egress of data outside your hardware where it's stored encrypted.
Feel free to argue the point but no need for the histrionics.