AIProtection does block websites even over https. Try it yourself using one of the Trend Micro test URLs:
The vast majority of websites don`t support ESNI, therefore the HTTP URL is not encrypted.
It also does block attacks. Just yesterday someone in another thread posted about how AiProtection was blocking an SSH brute force attack against his network (and AiProtection actually logged the attempts). I've also had it block brute force attacks against an RDP I had temporarily open for someone who needed remote access to a VM on my network.
So no, AiProtectionm isn`t just placebo aimed at gathering user data. It does offer a valuable layer of protection.