The only good part, that I'm not sure I actually believe, is this is opt-in by default.
I would not be surprised if that was changed. They have way to much invested in AI not to get something out of it. All that data (even if it's not the screenshots, but the typing data as well). Bare in mind, with atleast Outlook, they have 840 or so "partners" that handle "processing". So I highly doubt that there isn't something going on. Could be wrong, but I just highly doubt it.
Why are they pushing this so hard and it's really for the "normies", which means anyone that isn't a business and/or government. This is a backdoor that everyone knows about. One that wasn't all that secure with the first get go.
I wonder how much of a memory hog this will prove to be. Why are they so insistent on a feature that seemingly does not benefit them? Tin foil hat time.. it will benefit them in an as yet to be determined way.
Probably quite a bit of a hog. Eventually, I imagine that it will be spread throughout the OS (if it isn't already) and at some point, trying to get rid of it will cause other functionality not to work correctly (rather or not that other functionality is worth it to you is something else).
Most software vendors are no longer software vendors, they are in the data mining business. Especially if their core software products are long in the tooth (30+ yrs since their first version), hard to keep innovating in order to keep people invested in them over the long haul.
Now, this is just me speculating, on the outside looking in, time will tell on these new "features", but nothing that I have seen in recent years has made me regret swapping OSs all those years ago.