When UK demanded a backdoor to e2ee in iMessage, Apple told them they’d rather get out of UK. Why not do the same here? You’re posing a false dichotomy.
To my knowledge, Apple has always said that their response would be to withdraw affected services rather than break encryption.
> Apple has said planned changes to British surveillance laws could affect iPhone users’ privacy by forcing it to withdraw security features, which could ultimately lead to the closure of services such as FaceTime and iMessage in the UK.
https://www.theguardian.com/technology/2023/jul/20/uk-survei...
IMO they could’ve categorized the whole iCloud service as “affected” and disable all of it.
Users in the UK do still have the option to perform an encrypted backup to their local PC or Mac.
The UK would still lose ADP (and then also just Apple products in general). A precedent would still be set.
Your posing a strictly worse third option. Sure, it's an option, I guess. Apple could also just close down globally, as a fourth option. Or sell off to Google as a fifth. But I was trying to present the least-bad option (turn off ADP), rather than an exhaustive list.