The problem is when local law requests data on someone from another country. Then everyone in the world's iCloud data is only as private as the least private country with influence over Apple (the US isn't that country IMO).

Yes, and the next time you find yourself in a hold-up, just inform the perpetrators that what they're doing is actually illegal.

What's wrong with pictures of the police?

Also, a big concern that people have is what the Chinese government will want to be censored. Researchers in the US can investigate that without fear.