Please correct me if I'm wrong, but IIRC Recall is opt-in and keeps data on-device, and doesn't share it with any other systems or parties. And if one's device is compromised, they're screwed either way (keyloggers, password managers' data, etc), so while Recall data can be an interesting target, it's not like it's some game changer. I could be wrong, but I believe first iteration was user-accessible SQLite3 database (which was an issue), but Microsoft had tightened the permissions and isolated those files, so AFAIK it now requires additional authentication to access. I don't currently use Windows, so I can't really check, but that's what I've read.
If something is opt-in, local-only and partitioned away (inaccessible to regular-user processes to avoid easier abuse by malware and exploits) that sounds like a decent privacy-respecting option to me. There are plenty of crappy anti-user moves Microsoft had pulled with Windows, but Recall doesn't seem like one to me.
Unless, of course, they're forcing this on people (like how they aggressively do with Edge and OneDrive), or pull this data somewhere despite saying they don't do it, etc etc.