Which ironically, is less transparent, less open, and less private than Apple's original plan.
So you're right that the initial plan is indeed more privacy-friendly, but it has some major future privacy implications that are much worse.
Others providers do it and I don't expect Apple to sit and do nothing about it (governments, ngo pressure, etc.). Something worse is that the Apple brand could be labeled as a "CP enabler" which would very much hurt Apple way more than the current backslash.