Except that no part of what you claim is true:
https://support.apple.com/guide/iphone/back-up-iphone-iph3ec...
Yep. I've been using an iPhone since 2012, so about 14 years. I do a local backup to my Macbook and then perform upgrades via USB, I don't do over the air upgrades. I also don't sync my photo albums into iCloud. I do have iCloud backups enabled also. It's not even a concern about privacy, per se, it's a question of whether or not I actually control my data if its not in my possession. More copies is good for resiliency.
But that's a separate issue altogether
Watch ... it'll fail on me later today. :-D
In fact, though I don't use a lot of SD cards, I don't recall having one go bad. I'm sure it's happened, but obviously not often enough for me to remember.
We still don't have an easy solution to this problem.