For this reason, I really hope we can self-host our "private cloud" for use with apple devices. That would truly, properly allow end to end privacy. I don't trust Apple given the legislation you've just linked to, both claims obviously can't be correct.
Only a diminishingly small percentage of users have the ability to do this properly. I have 40 years of development experience and I don't trust my self to set up and properly run these types of servers.
Fair, but we could conceivably have an ecosystem of providers, like ProtonMail or whoever the user feels comfortable with. If it's just Apple we're headed for honeypot