Privacy == Protection from legal action
If you use your iPhone to conduct illicit business, the police can subpoena Apple and it will hand over your data (at least in the US).
Privacy in this context means preventing other apps from selling your data to brokers (e.g., location data) or using your phone information to do other stuff (e.g., AI training).
Yes, thank you. It looks like the backslash just escapes the character??