For the vast majority of people in the vast majority of situations, it's a very good thing and is ideal behavior. It is only in conspiratorial "but what if nation states are tracking me" noise that this is cast as a bad thing.
As in apple cannot find your phone, it requires your credentials which iirc includes iCloud account and device unlock code.
It’s not so far fetched.
I’ll also mention that Ćhina will find this new feature very helpful and are no doubt grateful.