Your proposed solution is in itself a privacy nightmare. Imagine Apple having to know your entire network of non-apple users just to not mess up your videos with friends.
You have to specifically identify and name the people in the photos, otherwise all it knows is that it's a person and throws it into that folder. And if you don't use icloud none of it leaves your device. It does the photo processing locally on the phone. It only knows what you tell it.
paul7986|5 days ago
1659447091|5 days ago
https://support.apple.com/en-ca/108795
https://applemagazine.com/find-people-and-pets-in-photos/