If this bad publicity doesn't get Apple to offer encryption for iCloud backups, I don't know what will.
When encrypting the drive it has you set your passcode. Then it tells you in plain English that you can let them store a decryption key for you in case you forget the passcode or you can store the decryption key yourself and risk losing access to your files if you lose it.
It’s simple, easy to understand, and allows the user to decide what sort of security they are comfortable with.
I didn’t take that option, but the option was there.