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On the face of things, it might. However, you’re still left with trusting Ledger as we had to do before.
There’s nothing saying that when you type your passphrase in that it won’t transmit to a server, short of USB snooping (which if they encrypt it, you’d just get nonsense) but at least you’d know *something* was sent.
We’re just left with lots of “what ifs” and questions when things are left closed source. As I said before, that particular aspect I don’t blame Ledger for because of the NDA, but it’s something they have to deal with by choosing this approach.