Earlier quoted context omitted.
Apple chose not-jail and not-ban when faced with the requirement that all iCloud users in China be subject to realtime CCP surveillance. Apple's iCloud operations in China (required under Chinese law for Chinese users) are in CCP-controlled datacenters. https://www.nytimes.com/2021/05/17/technology/apple-china-ce... Then they did it again in the USA, preserving a backdoor in the end-to-end crypto of iMessage for the…
What Apple does publicly and privately are not the same thing, and if anything, Apple has a track record of not removing loopholes that would reduce the surface area available for secret agreements and/or orders; for example, iCloud being able to view data. Related: https://en.m.wikipedia.org/wiki/National_security_letter
Even if you disable iCloud Backup, everyone else you iMessage with will back up all your iMessages from the other end, because it is on by default.
The idea that Apple can't read your data is mostly false. They can see all your photos and read all your chats, and all of the other files and app data from your device. They can do this without your device or password at any time.
They do this for the US government without a search warrant to over 30,000 user accounts per year, per their own transparency report.