What am I missing about this Ledger debacle?

Doesn't one have to opt into the new key storage service?

Otherwise, The only information Ledger should theoretically have on their user is their IP address based on using Ledger live software.

What am I missing? ...haven't yet don't a ton of research on this current affair.

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I agree with you that you have to opt-in to use that feature. But with Ledger being closed source, I have to trust their word without verifying.

The point of cold storage in my opinion was that the keys should never leave the device. I just don't want another possible attack vector to worry about.

Keeping my Ledger for now & not opting into this new service.

My seeds are on paper with a heat & water shield & not on my immediate premises.

If I get hacked. Fk it.