One major concern that remains relevant is the prospect of abuse. You can't steal, misappropriate, or abuse what doesn't exist in the first place. You can't subpoena or execute a warrant to retrieve data that was never stored.

Privacy laws and rules provide some projection, but that only goes as far as they are enforced. Nonexistence of data cannot be subverted and is a much more robust protection against the data falling into the wrong hands.

The issue isn't necessarily who has the data now. It's who might get it later.