Google is working on something similar, not because of the imagined nefarious reasons, but because it's a great idea.
Once the dust has settled, Apple will do it too. They will have some extra sham encryption on disk with keys hidden from the owner, for PR reasons after learning from Microsoft, because in a world where it's necessary to bash Microsoft keeping the data on the computer you own slightly hidden from you the owner is supposedly good. Of course data will be unencrypted in memory (they aren't complete DRM machines yet either, so there is no alternative) but no one will bother extracting it.
Yes admins can get all your shit, like they can do any way. Yes if you get hacked and the hacker has admin rights that includes them. Yes, it's still a great idea. Recall is local and has got little to do with Azure.