badtlc4 Opt-in feature, you have to read and accept the Xfinity Residential Service Agreement and Privacy Policy to turn it on. https://www.xfinity.com/privacy/policy They will turn it over to the authorities if subpoenaed however. (But so will every cloud vendor ever, security cameras that sync to cloud, etc).
Wi-Fi Motion requires devices to be connected directly to the XB7/XB8. You can choose up to 3 devices, and they must be stationary (no phones, tablets, laptops, etc) and not enter power saving mode. You also cannot have any xFi Pods or Storm Ready Wi-Fi units on the account. If you use your own router/AP, then Wi-Fi motion will not work. So there are ways to maintain 100% privacy for those that believe that Xfinity is tracking their movements.