I completely agree, I guess what they call “privacy win” is that this feature can now work without storing data on Google (highlighted by me):

Based on Google’s email, it seems the company will allow Gemini to access messages, WhatsApp, and control device system settings without requiring that you enable the Gemini Apps Activity setting for your account. This setting saves your Gemini history to your Google account, potentially allowing for better personalization.

Previously, if you had this setting disabled for your Google account, you weren’t able to use the Messages, Phone, Utilities, or WhatsApp extensions in Gemini (via 9to5Google). Once this change rolls out to your account, you will be able to access these features without having to save your Gemini history on Google’s servers.

When they say

potentially allowing for better personalization

they sound like the companies trying to sell you these features without mentioning the privacy implications of said features. :/