The "find my" program is interesting to me because, for the first time (as far as I'm aware) it uses your devices to provide utility to Apple (to resell). They remain serious about privacy, but there's still something invasive about it I think they've never done before and always seemed implicitly positioned against.
Does it matter if they now know where my bike is parked, given that they already know where my phone is (i.e. I am) at all times? Meanwhile, I agree with you. It would be nice if Apple (or anyone) didn’t have this type of location information about me. However, it seems that ship has sailed and 5G + mesh networks will make it even more precise.
Find My-tracked devices emit a Bluetooth chirp. If any Internet-enabled iOS devices hears it, it forwards to iCloud/Apple backend.
I can lose a WiFi-only iPad, and it can be fully off any WiFi connection, and still get a ping on its location if its Bluetooth chirps get relayed by a stranger’s iPhone.
This exists now, for i.e. the offline iPad example. This larger launch extends the Find My network to a new class of Internet-less, long battery life tag devices.