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Hard to guess what information sends or what the device can do when connected via WiFi when this information is not open and probable it will not be.

Take as an example this incident( article excerpt/ my emphasis):

Amazon Erases Orwell Books From Kindle

...

Digital books bought for the Kindle are sent to it over a wireless
network. Amazon can also use that network to synchronize electronic
books between devices — and apparently to make them vanish.

...

and also this incident where the account was also closed(excerpt/my emphasis):

Why did amazon close a woman’s account and delete all her kindle books?

...

According to Amazon’s terms of use, “Kindle Content is licensed, not
sold, to you by the Content Provider.” It states that “Risk of loss
for Kindle Content transfers when you download or access the Kindle
Content.”

...

This are by no means isolated, and are a far cry from the Privacy Notice you mentioned, and made me keep always the Wi-Fi off and backup my documents.


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