1. No internet apps: store data locally on the device only, no upload or download.
2. Partial internet apps: store data locally, and only download data through an Apple proxy service that hides the user's IP address and any identifying info.
3. Full internet apps: store in the cloud, uploaded/downloaded through an Apple proxy that logs/filters everything. Or even stored in Apple's cloud.
4. Unrestricted internet apps: VPNs and web browsers, and whatever else actually needs arbitrary access to the internet.
There's no reason my bluetooth scale app needs #4 (which it has today) when I would much prefer it have #1.