Agreed 100%. However, I'm very reluctant to use laws to prevent people from choosing the things that they decide are best for them on the premise that I/we know better.
The hurdle for my determination that I know better what's good for someone else and to restrict their choice to conform to my superior knowledge is extraordinarily high.
My view comes from being tired of seeing how the market forces always incentivize the most scummy garbage that can be gotten away with. The only control point we have here is the "gotten away with" part. I'm not very into telling other people how they should live, but a stable and happy society does require some of that.
(That said, I currently have very little influence over this, so I resort to what little of a market signal is created by ranting about this publicly, voting with my wallet, and discouraging people from using solutions that are user-hostile.)
Also let's not overestimate the involvement of the cloud in the actual voice recognition. With ML models, it's the training of a model that's expensive, not the actual use of that model. I don't see a reason why voice models, once trained, couldn't be run on the device, at a slightly increased cost of compute (of which phones have plenty). It would be fair and good engineering to provide models in exchange for payment.
And no, I don't buy "it's not that simple", because I've worked with MS Speech API over a decade ago, on much slower hardware and on a shitty microphone I soldered myself from parts, and it did work well enough in "fixed grammar" mode after a bit of training with various sources of background noise (read: very loud music). I don't believe there's any technical obstacle; the decision to run this in a cloud is a purely business one, and like many modern business models, this one is geared towards extracting value from purported customers, not giving value to them.