E2E with some scanning at the onramp is still much better than no E2E. If iCloud was compromised, your data is still safe, among many other reasons. If the US Military physically raided the data center and carted out all the hard drives, my data would still be secure. It's still a better alternative. It's not perfect by any stretch, but it's better than what we have now.

Also you are aware Google Photos, Facebook, etc. do scanning anyway and have for almost a decade?