I think what we're seeing is Apple betting on using cryptography as part of the product design phase. Apple devices already do weird things like wake up to announce their physical location so that users can find their devices. The thought of a powered down or suspended laptop waking up to announce its location isn't something I particularly want, but Apple users seem to like it.
Anyone who has spent any time on spaces that are strongly encrypted and focused on privacy know how quickly they become havens for the sort of material that Apple doesn't want associated with its brand. How many "Apple protects child predator" news stories do you think Apple can withstand while still remaining a luxury brand?
Apples goal here is to have the reputation for end-to-end encryption and privacy while simultaneously not being seen as a phone for child predators. They don't have a lot of options if they want to thread that needle.
I've thought about this space quite a bit, and all options suck. Client side scanning is really the only choice with reasonable tradeoffs. The other option is scanning encrypted photos on cloud using secure enclaves to do the scanning. My guess is that when the tech makes that possible Apple will move in that direction.
I agree that this isn't the best for privacy nuts like me. But the iPhone isn't a blackphone, it's a luxury handbag. The phone isn't for privacy nerds, the privacy is there to make other mobile OS's look cheap and tacky.