I'm surprised to see it "baked into" iOS. Apple is going to need to make a statement pronto, about what it does on iOS, and that the "don't send" option actually does turn it off.
Even with that, though, CIQ now becomes a blackhat target. If it can be compromised, it'll be a sweet, built-in rootkit.
How many of your devices have CIQ on them?
Regards. Al
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