Apple could have disabled iCloud completely for UK users. This would protect both UK users and other users who’s data would also been captured in an iCloud backup.
They would lose some money on services, but would have been the better choice to stand up to the UK government and protect the UK users.
It's fine to continue providing the service as long as people know it's not encrypted. I am not worried about my photos being subpoenaed; I am worried about losing them. I'd rather have the service.
They would lose some money on services, but would have been the better choice to stand up to the UK government and protect the UK users.