Earlier quoted context omitted.
Seems kind of ridiculous that in order to opt out of Apple's airtag network you essentially have to give up the ability to find your phone if it gets lost.
It's not ridiculous at all - you don't get to reap the benefits of the network without participating.
This new "Find My" network (what a stupid name, btw) also allows to use other devices to report positions of nearby devices for those that don't have a data connection (AirTags or iPhones that were powered off).
The problem seems to be that a single toggle controls both features, while the first feature doesn't rely the community network and should remain available even if you opted out.