You're certainly entitled to that opinion, as is Apple, but it basically flies against the definition of anything else in photography. "Straight Out Of Camera" is about taking the time and effort to nail something so that when you hit the shutter button, exposure, focus, composition are all "as the camera saw it", not "as the camera saw it and then image manipulation software found the subject, and applied a mask to the image to burn out the non-subjective areas while keeping the exposure of the subject as-is, if not enhanced".
Edit: Hell, even Apple's own iPhone X page up now says this:
"A new feature in Portrait mode, Portrait Lighting produces impressive studio‑quality lighting effects."
"Create beautiful selfies with sharp foregrounds and artfully blurred backgrounds."
Somehow, these are "effects" which don't fall under the umbrella of post-processing.
But this is a nitpick, admittedly. Nothing wrong with the feature or whatever, but it amused me to hear "No processing. Just [applied post processing]."