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Yes.

"If a Find My network accessory that's separated from its owner is seen moving with you over time, this alert is displayed"

https://support.apple.com/en-us/HT212227

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Oh so this is really only useful for tracking stolen items if whoever steals it doesn't have an iPhone or an Android with their app on it, I never realized that.

The AirTags are explicitly designed to track lost items, not stolen items.

Can probably track the iPhone that the AirTag notified. If apple and law enforcement (private?) want to…

Nope, Apple can't tell you where an AirTag is nor can they tell you what iOS device relayed the location.

Apple can track an iPhone and so can telcos

This being the case, I don't understand why they need more than "this is where you were the last time your phone was near the tag"?

That seriously degrades the usefulness of airtags. I might want something with less privacy features included.

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