It won't catch anything but the dumbest of dumb criminals, because those who care about CSAM can surely figure out a better way to share images, or find a way to obfuscate their images enough to bypass the system (the lower the false positive rate, the easier it must be to trick the system).
So what's left when all the criminals this is supposed to catch have figured it out?
False positives. Only false positives.
Is it really worth turning personal devices into snitches that don't even do a good job of protecting children?
Also, numbers about false positives must be taken with a grain of salt because of the non-uniform distribution of perceptual hashes. It might be that your random vacation photos and kitty pics have a 1-in-a-million chance of a fapo, but someone who happens to (say) live in an apartment that has been laid out very similarly to a scene in pictures appearing in the CSAM database may have a massively higher chance of fapos for photos taken in their home.