iCloud data is encrypted at rest (edit: except for Mail apparently). The type of encryption (service or end-to-end [E2E]) is specified here: https://support.apple.com/en-us/HT202303
It can be argued that from a user's viewpoint not having E2E encryption is tantamount to not having encryption at all, but from a technical standpoint the data is encrypted.
According to the table on the second link iCloud Photos are encrypted on the server (at rest). Am I missing something?
Apple (and thus, LEO) absolutely can look at your photos on iCloud. What you are missing is that "encrypted at rest" is essentially "not encrypted in any meaningful way".
Edit: I also meant iCloud backups in my original post and how Apple can decrypt your E2E encrypted iMessages with the key the backups contain. But I posted it last night and couldn't edit it once I caught the error. It would be amazing for other iCloud services to have E2E encryption so long as the implications of iCloud backups having your encryption keys is stated front and center when choosing to opt-in.
Everything about Apples messaging makes you believe otherwise. That seems pretty disingenuous.
Then again, 99% of consumers have very little choice that doesn’t include huddles and complicated setup. We all get the same moon goo, under a differ different brands.
Good, bad, or just the fact of life?