It's simpler than that
Apple is not the Police.
It has no right, no mandate and no authority to touch my pics - even if I decide to upload them to a cloud service.
That Apple is giving itself the right to do so should actually be illegal. If Microsoft declared that it had decided that Windows 1 0 would have a service that analyzes all pics on the local computer there would be outrage and an enormous backlash.
Apple has done just that and all I hear are crickets.
Something is very wrong here.