If the software is scanning everything, and they were already scanning uploaded content, why have a press release at all? If you're deploying an unrestricted panopticon to all your devices, why on earth would you go to the trouble of announcing it in the first place?
iCloud stuff already isn’t E2E and they already scan.
This system is built exactly to surveil the entire contents of your mobile device, cloud enabled or not.
Apple has burned years of social capital in 2 days.