It doesn't just feel like a violation, it is one. This opens doors for a number of future abuses of power, and abuses of rights.
The average user has no way of knowing what's in the database of hashes being compared against, and we have no way of controlling what goes into those databases. If some party in the US government decided that they didn't like the Quran, and put a million pictures of it in the database, and served the Apple reviewers with a gag order or some other nonsense, we'd have a 80's dystopian blockbuster as everyday life in our country.
My device, my property, my rules. Apple doesn't get to do a stop and frisk, even if it's "for the good of the children".