You are certainly right, in my opinion, but I think that it's even more important to note how tone-deaf this move was in light of the recent iCloud leaks (I'd argue, in fact, that all of Apple's recent press conference was similarly confused).
Nobody wants to think about the idea that Apple can do/see anything they want at any time to our music collections and phones. Even if that isn't strictly true, and even if they probably wouldn't, it's a perception that's being confirmed by recent events, and this stunt re-enforced it.