It’s completely technically possible to have cloud services where customer data is opaque to the provider. Some of Apple’s services are like this already, for example.
I think there’s a sweet spot currently with munging your data blindly on the server so that your client device battery still lasts all day.
Meanwhile Apple and others push on with making client side models more efficient so that eventually the server costs and complexities go away.
dont want to share my pics with "cloud services"