We also have decades of experience and culture around how to use network commands properly, especially for FLOSS tools.
Considering that newbies will be attracted to these cloud tools, the risk of information leakage sounds a lot higher in the second instance.
iTerm doesn't have that. It has a separate pop-up window where you can type questions and get answers.
If it had a feature like you describe, I'd be there with my pitchfork. Thankfully, it doesn't.
I can’t stand the people up in arms about an opt-in feature that is one of many that are in iTerm2. ITerm2 is not and will not become some kind of AI-based terminal, that idea is so absurd and so are the people making that argument.
In fact, the implementation is so barebones that it’s not useful IMHO so the outrage is even more silly.