Apple can delete your music if you do business with them—whether they choose to do it or not is up to them.
Caveat emptor.
No, they can not. Apple does not have access to your files on your hard drive unless YOU give them access and even then, they would not have permissions to do so under UNIX. Apple has not done so, or there would have been a hue and cry across the world already. Did you not read the article?