> Is is bad for the individuals who are re-victimised on every share.
Absolutely.
> It is also bad for the fabric of society at large, in the sense that if we don't clearly take a stand against abhorrent behaviour then we are in some sense condoning it.
Much less clear. There's always been the argument: does it provide an outlet with no _new_ (emphasis on "new" so people don't skim that word) victims, or does it encourage people to act out their desires for real?
I don't have any answer to this question; but the answer matters. I do have a guess, which is "both at the same time in different people", because humans don't have one-size-fits-all responses.
Even beyond photographs, this was already a question with drawings; now we also have AI, creating new problems with both deepfakes of real people and ex-nihilo (victimless?) images.
> Does the tech industry have any alternate solutions that could functionally mitigate this abuse?
Yes.
We can build it into the display devices, or use a variation of Van Eck phreaking to the same effect.
We can modify WiFi to act as wall-penetrating radar with the capacity to infer pose, heart rate, and breathing of multiple people nearby even if they're next door, so that if they act out their desires beyond the screen, they'll be caught immediately.
We can put CCTV cameras everywhere, watch remotely what's on the screens, and also through a combination of eye tracking and (infrared or just noticing a change in geometry) who is aroused while looking at a forbidden subject and require such people to be on suppressants.
Note however that I have not said which acts or images: this is because the options are symmetrical under replacement for every other act and image, including (depending on the option) non-sexual ones.
There are places in the world where being gay has the death penalty. And if I remember my internet meme history right, whichever state Mr Hands was in, accidentally decriminalised his sex when the Federal courts decided states couldn't outlaw being gay and because that state had only one word in law for everything they deemed "unnatural".