The implications of this are unclear. I like blowing these claims out of proportion, but in reality we genuinely have no idea what this means. It could simply signal that Apple is complicit with benign cloud-storage security procedures enforced by the USA. It could also mean that the US has carte-blanche access to iCloud data and decryption keys. You're free to draw your own conclusions, but the surrounding context seems to imply that Apple has an under-the-table relationship with our government (as does most of the tech industry, surprise surprise).
Oh, and I don't really know/care if LS is harmful. You should be aware that it's not going to outsmart Apple if they want to collect your info, though. They have kernel-level networking access, which companies like Microsoft have abused in the past to collect telemetry on crafty users. It's probably not harmful, per-se, but your perception of it as an impassible wall might be.
Also someone told me here that LS should be considered harmful.