I don't doubt the pressure they are feeling at the upper levels at Apple is real — but I agree, this initial rollout is also-ran and they underdelivered.
I disagree that Apple should have sat on their hands. LLMs are already shipping apps that are beginning to integrate with the OS (looking at you, ChatGPT icon in my MacOS menu bar). How much user privacy should Apple allow me (well, their customers generally) to cede before they step in?