It keeps the meter-reader from going onto your property mostly. I spoke with my Xcel guy years ago about it. They can read the meter wireless/remote. Not sure what else it does. It is 2021, and those dial meters are 50's technology. Probably a good upgrade for them, especially if you keep a dog in your yard.

If your worried about privacy... Xcel already has all your personal info on a internet facing server with in an unsecured/unencrypted database on an un-patched server with known security flaws That's the weaker link imo, not the smart meter.