I think you are being utterly paranoid
I would agree.
There is a lot of paranoia and FUD ("Fear Uncertainty and Doubt") being spread above.
I would urge anyone reading to read the words written in conjunction with a gigantic pinch of salt.
It should also be pointed out that you can either entirely disable "iCloud Drive" or disable TextEdit's use of iCloud. All you need to do is look in System Preferences, its right there !
No further comment.