I don't think you're disagreeing with me? If you don't want Apple to have access to your passwords, don't give your passwords to Apple.
The biggest problem with Keychain here isn't that it is able to share with iCloud, it's that it claims to have the ability not to (but it seems to not work) and will "upgrade" to sharing without prompting. This is a bad thing. But now we know it's happening, we can choose to avoid the product.
On the other hand, Apple do write the OS and all its updates so they can steal all your passwords whenever they feel like it. And one might be inclined to assert that they just did.
Someone said "Apple re-activated a password sharing system and that's bad because I intentionally turned it off"- I agree.
To-wit someone responded: "Well, actually I think Apple are going to do a better job of handling passwords" - which, I do not agree with given the context of reactivating the feature silently.
The biggest problem with Keychain here isn't that it is able to share with iCloud, it's that it claims to have the ability not to (but it seems to not work) and will "upgrade" to sharing without prompting. This is a bad thing. But now we know it's happening, we can choose to avoid the product.
On the other hand, Apple do write the OS and all its updates so they can steal all your passwords whenever they feel like it. And one might be inclined to assert that they just did.