Well, since 1P clients are not open sourced, you always have to trust that they implement their white paper correctly, this is regardless before or after the transition.
Now, if you do trust them, then you should believe when they say that "IdP is only used for authenticate downloads of _encrypted_ secrets and the decryption only happens on device with a local credential", in which case a breach of IdP still would have no chance of impacting users.
I have a lot of rants about this transition, but the storage location of encrypted data is never something I worry about. In the past it was my personal iCloud/Dropbox accounts, now it's my 1Passowrd.com account. Am I missing something?