While super impressive I haven't seen the thing that would actually destroy the algorithm which is given a hash and random reference image produce a new image which has that hash and looks like the reference image.

What you've seen is worse than that.

All you need to do to cause trouble right now, would be to get a bad image, hash it yourself, make a collision and distribute that.

Let's say for the time being that the list hashes themselves will be server-side. You won't ever get that list, but you don't need it in order to cause a collision. You would need your own supply of CSAM to hash yourself, which while distasteful is clearly also not impossible.