The "This could be sensitive to view" screen is downright Orwellian. This technology could be used to scan for ANYTHING, completely undermining user privacy. It might just be CP today, but tomorrow it could be screenshots of protest material, whistleblower content, or anti-government memes.
I cannot express how sad I am Apple has decided to do this. It doesn't protect children, it won't catch any pedophiles, but it certainly WILL be misused in the future and create a chilling effect on what (politically dissident) content people are willing to store on their phones.