My TL;DR is that they tried to run an on-device model to classify expenses, it didn't work even for simple cases ("Kasai Kitchin" -> "unknown"), they went deeeeeep down the rabbit hole to figure out why and concluded that inference on their particular model/phone is borked at the hardware level.
Whether you should do this on device is another story entirely.
Why shouldn't you? It's your device, it has hardware made specifically for inference.
What's to be gained, other than battery life, by offloading inference to someone else? To be lost, at least, is your data ownership and perhaps money.
I would really not want to upload my expense data to some random cloud server, nope. On device is really a benefit even if it's not quite as comprehensive. And really in line with apple's privacy focus so it's very imaginable that many of their customers agree.