No, this has nothing to do with that.

Dropbox scans your images in the cloud for CSAM. Google scans your images in the cloud for CSAM. Meta scans your images in the cloud for CSAM. Microsoft scans your images in the cloud for CSAM. Apple did not (and still does not) scan your images in the cloud for CSAM.

Notice anything different here? The privacy company wanted to do what everyone else was already doing in a privacy-preserving way. They made a press release about it, and everyone got mad. But the same people are just fine using Google and MSFT which actively scans their data for the same images?

I seriously do not understand your logic behind this.