False. It can't be left open to Everyone for more than 10 minutes at a time. Frankly, from a security perspective cutting this off after a few minutes is preferable. You can turn it back on for another 10 minutes.

Pure conjecture on my part, but I wouldn't be surprised if China wanted them to block it entirely and Apple negotiated this compromise to try and appease officials while still allowing information sharing.

Your hyperbole is a massive exaggeration. They didn't "bend over backwards" to help China suppress freedom. They maintained as much usability as they could under almost certain direct legal pressure from the host country. If China says turn it off completely, that is what they would have to do if they want to operate in China. Apple must obey local laws.

Would the interests of freedom be served if Apple refused to obey local laws and there were no iPhones sold in China? Everyone running a Huawei phone. Would that advance the cause of freedom? Samsung, Google, everyone has to make these choices if they want to operate in China.