Isn’t that what “more private and works on each device independently” implies?
Obviously we need more detail on the implementation here but AFAIK Timeline is the only time I’ve seen a full accounting of my location in the cloud. There will, I’m sure, be a lot of ways it can still be inferred: purchases, which IP address I’m on etc etc but if Google is stepping away from constantly streaming your phone GPS location to the cloud that’s surely a good thing.