The remote is still needed so you can pick the AppleTV from input sources, adjust volume, or select picture mode. AppleTV, AFAIK doesn't have HEC. You need it on both ends for one device to tunnel via Ethernet. AppleTV also doesn't do ACR and has third-party Jellyfin support. Not so sure about other streaming stick/boxes.
Two other potential sources for the TV getting out: 1) TV may silently turn wifi on and scan for open routers nearby, and 2) if the REMOTE has wifi on it. Both would be easy to honeypot.
It's pure madness we all have to speculate about ANY of this. Anyone in LG's corporate line who approved this crap should be demoted for sheer stupidity.