I'm fine with the idea that if I upload stuff to someone else's server, they may take a look at it and maybe even punish me for what I've uploaded. Certainly if I encrypt the data before I upload it, they can't do that. But if I don't, then it's fine with me if they do.

But my device should not be snitching on me. Yes, this device-side scanning is supposedly gated on enabling uploads to iCloud, but that doesn't really make for much of a distinction to me. And since Apple certainly has the capability, they are likely one secret court order away from being required to scan even photos that aren't being uploaded, at least on some targeted subset of devices.