It seems like game studios cannot possibly do right in this regard. They can either be like valve or rockstar where they are criticized for taking their time, although they almost always put out great original titles or they can be like cd project red where they push out the game as fast as they can and they are criticized for rushing it. There can be no middle ground as to not rush it and to make it a good game may mean delaying repeatedly until it’s in a releasable state, and only the studio can be given that decision.
Their reasoning is sound imo and shows that they are actually interested in maintaining privacy, as they are preemptively cancelling this as it only opens the door. It doesn’t change that they need to find a way to replace it that doesn’t do this though, probably exclusively on-device.