I don't think this is the case, but it sure seems like something actual scammers would come into forums to downplay. "Relax guys! There's no problem, it's tooooootally safe, trust MS! wink wink."

You are correct about the downplaying. I do not see how this adds any appreciable danger in terms of data stored, that isn't already extremely accessible in a place on the computer with the same permissions that exist for Recall.

In turn, I do not see people complaining about Firefox storing all your browsing history in plain text, your chat history in cache files, so on and so forth.