This is the difference between putting CSAM on a sign in your front yard (maybe not quite front yard but I can't come up with quite the same physical equivalent to a cloud provider) and keeping it in a password protected vault in your basement. One of those things is protected in the U.S. by laws against unlawful search and seizure. Cloud and on your device are two very different things and consumers are right to be alarmed.
I'll say it again, if you are concerned with this privacy violation, sell your Apple stock and categorically refuse to purchase Apple devices. Also go to https://www.nospyphone.com/ and make your voice heard there.