The better news is that true e2e encryption is coming for most of iCloud, including backups and iCloud Drive, with user-controlled Advanced Data Protection.
The unfortunate down-side (that few seem to be reporting, unless I have this wrong): if you turn this on, that means no iCloud services available if you have a Mac running anything older than Ventura 13.1. (I do have a couple stuck on Monterey, and one iMac that can upgrade but I’m waiting, but I still may activate this and go another way for services like iCloud Drive, Notes, etc.)