Apple has a privacy setting for each keyboard that restricts if they have network access.

Glad to learn this! I didn't know about it but I also double-checked the UI and it says in a warning dialog that the third party will be able to see everything I type and the network setting isn't mentioned there.

Anyway, my point regarding the UX still stands. Apple's UX is barely as good as other major player's - not great, not terrible. Mediocrity isn't what Apple should be aiming at.