Actually up until a few months ago I swore I just couldn't use these hosted models (I regularly use local inference but like most my local hardware yields only so much quality). Tech companies, nay many companies, will lie and cheat to squeeze out whatever they can. That includes reneging promises.
With data privacy specifically I always take the default stance that they are collecting from me. In order for me to use their product it has to be /exceedingly/ good to be worth the trade off.
Turns out that Claude Code is just that damn good. I started using it for my own personal project. But the impetus was the culmination of months questioning what kind of data I'd be okay with giving up to a hosted model.
What I'm trying to say is that this announcement doesn't bother me that much because I already went on my own philosophical odyssey to prepare for this breach of trust to occur.