It's FUD because OP cannot possibly know that "This is about them not wanting the public to see". That's pure speculation, and it fits the FUD definition perfectly.
And given that United, for one, gives me the exact same information (as far as I can tell) in their app about the location of my checked luggage as their computers have, it seems unlikely that one of their partner airlines would explicitly scheme to prevent people from knowing where their checked luggage is.
As others have said, this seems a case of AirTags possibly don't comply with long-established rules for checked luggage but, like a lot of the rules for electronics on commercial airplanes, the letter of these rules is broken in various ways probably tens of thousands of times every day.
