I didn't even know this was a feature. My understanding has always been that Echo devices work as follows.
- Store a constant small buffer of the past few seconds of audio
- Locally listen for the wake word (typically "Alexa") using onboard hardware. (This is why you cannot use arbitrary wake words.)
- Upon hearing the wake word, send the buffer from step one along with any fresh audio to the cloud to process what was said.
- Act on what was said. (Turn lights on or off, play Spotify, etc.)
Unless they made some that were able to do step 3 locally entirely I don't see this as a big deal. They still have to do step 4 remotely.
Also, while they may be "always recording" they don't transmit everything. It's only so if you say "Alexaturnthelightsoff" really fast it has a better chance of getting the full sentence.
I'm not trying to defend Amazon, and I don't necessarily think this is great news or anything, but it doesn't seem like too too big of a deal unless they made a lot of devices that could parse all speech locally and I didn't know.