Image of the current settings and explanation: https://imgur.com/a/TepOqb2
This new "Find My" network (what a stupid name, btw) also allows to use other devices to report positions of nearby devices for those that don't have a data connection (AirTags or iPhones that were powered off).
The problem seems to be that a single toggle controls both features, while the first feature doesn't rely the community network and should remain available even if you opted out.
Current settings screen: https://imgur.com/a/TepOqb2
There are currently two independent systems for finding your phone that work in different but complementary fashions.
Well arguably 3 systems, an iPhone can also be set to report it’s location when the battery is low.
If your Bluetooth transceiver is disabled, your iOS device will not see nor report the locations of any Airtags that are otherwise in range.
If you do enable Bluetooth on an iOS device, any Airtags detected will be reported to Apple over any available data connection, and this cannot be disabled in iOS as far as I know.
Disabling Bluetooth will likely save any device's battery. This is separate from GPS and mobile data.
That certainly seems to contradict Apple's own documentation on the Find My network. At least according to my interpretation, it seems very clear that disabling the "Find My network" toggle will disable your device's participation in the network.
It doesn't particularly imply that your device isn't still acting as a 'base' for other devices in the network.
> Find My can use the Find My network to help find devices even if they are not connected to the internet and, for supported devices, even if they are turned off or erased. Devices in the Find My network use Bluetooth wireless technology to detect missing devices or compatible items nearby, including AirTags and compatible third-party products registered to your Apple ID, and report their approximate location back to the owner. If a device is turned off or erased, that location is also visible to members of the owner’s Family Sharing group with whom they have chosen to share the location. The interaction is end-to-end encrypted, and Apple cannot see the location of any offline device or reporting device. When your device participates in the Find My network, it can both be located by the network and anonymously help locate other missing devices. You can choose to have your iOS or iPadOS device not participate in the Find My network by going to Settings > [your name] > Find My > Find My [device] and tapping to disable Find My network.