I can unlock my doors with my phone and monitor the cars location with my phone with cloud connectivity.

This isn't required and was offered as a 5 year free plan with optional paid extensions after

How is this bad?

Now the car company has a live feed of your location and the ability to unlock your car at will. That's probably fine unless they get hacked, at which point it abruptly becomes less fine. https://news.ycombinator.com/item?id=35919133