[ocdtrekkie]

The problem isn't that you can't opt out of it. The problem is that Google cripples your phone if you opt out of it. Because Google's software is not designed to function properly without tracking. (For instance, your local Google Maps install won't even remember where you live or your last location search if you turn search history off in the cloud.) Not having basic local-only functionality is silly, unless you're specifically trying to push people to stay in your tracking system.

[curt15]

Are iPhones significantly more functional without cloud connectivity?

[macintux]

Yes. Apple emphasizes data processing on the device itself to enhance privacy.

Additionally the tracking that does take place is generally less invasive, since Apple cares a great deal less about correlating your buying habits with your life history to sell you ads.