The system is essentially scanning for the signature for some known set of images of abuse so that it aims to capture abusers who would naively keep just these images on their machines. (It can't determine if a new image is abusive, notably).
It's conceivable some number of (foolish and abusive) people will be caught this way and those favoring a long dragnet for this stuff will be happy. But this opens the possibility that a hacker could upload an image to an innocent person's computer and get that person arrested. Those favoring the long dragnet will naturally say the ends justify the means and you can't make an omelet without cracking a few eggs. Oh, "think of the children".
Edit: Also worth adding that once a company is scanning user content to try to decide if the user is bad, it makes it that much easier to scan all kind of content in all kind of ways for all kinds of reasons. "for the good", naturally.