Though it can fall back to SMS in case you don't have data, which isn't E2EE. I'm not sure what the UX flow is like in that case, whether it warns you and asks for permission to send over less secure channel.
I was under the impression that this is a 'proprietary' extension between Google devices, and that there was no RCS-standard-based E2EE:
> The RCS specification defines several types of messages. Our implementation of E2EE uses varying strategies for encrypting each type of message to maximize user privacy while still adhering to the RCS specification.
* https://www.gstatic.com/messages/papers/messages_e2ee.pdf
They use "vnd.google.rcs.encrypted" in the Content-Type header.
Anyway, the competitor of iMessage and Messages is WhatsApp. Nobody is sending me SMSes except banks so even iPhone users use WhatsApp to send messages to friends and to groups in my country. If somebody would insist using only iMessage they would be out of the loop. And about Messages, well, I don't have that app, I receive no SMSes, I still communicate with everybody so I guess that nobody uses Messages too.
The issue (I think) you are referring to is that if you enable iCloud backup[2] or iCloud for Messages[3] (both of which move effectively move the storage of the messages to the cloud, either as part of the device backup or as the canonical representation that devices sync from respectively) then the messages decoded on device will be stored in blobs that iCloud has the keys to unless you enable Advanced Data Protection.
[1]: https://support.apple.com/guide/security/how-imessage-sends-...
[2]: https://support.apple.com/en-us/HT211228
[3]: https://support.apple.com/guide/icloud/what-you-can-do-with-...