Right... because all of their data is automatically pumped up to Apple's servers. Android offers a similar thing. Imagine my surprise when my 'droid tablet needed a reload and all of my crap showed back up on it a couple days later.
If all your data is backed up to someone else's server, that is in fact, no different than giving them the dang keys anyhoo.
Most users do not have a propensity toward backup (part of why it's becoming automatic on phones), and since I kind of specialize in soft recovery of hard drives, I get a whole bunch of desperate people trying to get their crap back from a damaged and failing drive - I can tell you from experience that even with encryption keys, my chances of getting anything off of a damaged and encrypted drive hover on the negative side of 0%.
Again, unless you know what you are doing - DON'T encrypt. Unless you have at least two chains of backup to unencrypted devices, off the primary machine, DON'T encrypt.
You apparently don't understand how that actually works on Apple devices. if you choose to use the cloud, which you don't have to do, by the way, your data is encrypted with the key from your device. Apple doesn't have the key to decrypt it. To them it's just a big blob of data. The feral government is kinda pissed about that and is making quite a bit of noise about it. You see, Apple has implemented the crypto correctly. You control the keys, they just hold the data, if you choose to use their 'cloud'. They can't even recover the keys if they have physical posession of the phone if they don't know your password. There has been a bit of news of late about some android encryption implementations that have not been quite as robust. Crypto done properly is not simple, so Microsoft, and others have had issues with it, as has Apple in the past. With recent releases of their OS, that's not the case.
As has been stated here and elsewhere many, many times, Microsoft simply doesn't do cryptography well at all. I think it comes from the mindset they seem to have where they are a bit confused as to exactly whose data it is in the first place. Seems to me that they believe it is somehow theirs. Google seems be largely the same, but that's just my opinion. I haven't really looked at google's stuff too much. I have an android device that I use as a book reader. I don't keep anything really important on it, but I really like it for the tool that it is.
I'm not really much of an Apple partisan, as I prefer Linux for my main computers, and I don't particularly care for their walled garden approach for my computing needs, but I respect when they do things right. I'll bang them when they screw up, but their implementation of cryptography is not one of those things.