>> So how can it reflect badly on their case?
> Because these privacy violations are happening despite their locked down App Store.
That’s an obviously false comparison. You are comparing against a perfect world, not against the real world.
A valid comparison is against what privacy violations would be happening without the App Store.
As a simple example, we know for certain that Facebook would be a doing a lot more tracking without the App Store, because they have told us in public that they would.
Therefore the App Store is in fact protecting users against large categories of privacy concerns, and this easily corrected hole doesn’t change that.