I think Steve truly believed at his core, very simply: your laptop is your diary, and they have a responsibility to that. I don't think Tim would be CEO if he didn't believe what Steve did. It's so weird, but I really miss Steve. https://www.youtube.com/watch?v=Ij-jlF98SzA
Steve believed at his core that locking down devices was the best way to extract business value from users. That's why you can't install any apps without telling Apple or get your location without sending it to Apple. He also believed very strongly in good marketing, and he jumped on privacy marketing very quickly after the Facebook - Google privacy spat that coincided with the failure of iTunes Ping.
Source: people who were at Apple during that time period.
Example: https://www.nbcnews.com/news/world/government-officials-want...
I think people underestimate how traumatic it was culturally to Apple and how Apple generally experiences comparatively little turnover vs their other major tech peers, so the responses to those traumas linger. Same with the brouhaha over the CSAM tech that they attempted to bundle into the iPhone that ostensibly was trying to preserve your privacy and they instantly got smacked down over it.