Does it protect my privacy?
Forget it.
Apple is really “on” the issue of privacy! They’re probably the best company out there for that ... in their field.
Yes, it does. Apple refuses to allow government access to their servers. . . and your data is encrypted with 256 bit AES encryption before it ever leaves your device and on your device. Then Apple anonymizes it, splits it into four pieces, combines it with other users, and then AGAIN encrypts to an additional 256 bit AES encryption on their servers. Even if the government were to ask for your data, all they would get is gobble-de-gook. Decrypting that data without your passcode, which is entangled with your devices 256 bit UUID, would require 10207 YEARS before every possible combination of passcodes could be tried to get into your data. I think it would be pretty much of a moot point by then. The Universe will have died from heat death long before that.