If this feature or similar features could be disabled, it doesn't need to be an either/or situation. I don't have an iPhone though, so no idea if it's configurable. But seems that it should be, assuming it's not implemented deep in hardware.
Doesn't even need to have an off-switch, if it would preserve the inputs that went into AI stitching magic, so that one could recover reality if/when they needed it.
But why? Because out of the literally trillions of images shot with an iphone a tiny tiny percentage comes out wrong, similarly to how panorama images will look if you move? It unequivocally improves the quality of images in low light by a huge margin.