With that move I don't see how Apple will be able to refuse when a government asks it to scan for images of Whinnie the Pooh for example. They say they won't but they are too reliant on Foxconn's Chinese plants for manufacture, they could easily be blackmailed into compliance. (Android devices with a Chinese OS probably already report a wide array of stuff to the government)

This is another step towards total global surveillance of citizens. I don't see what can be done about it, technology makes it possible so it will happen, it is just too juicy for governments, they can't resist it.