No, I didn't miss that point at all. It's just orthogonal to my objection to the scheme. I object to the idea of formally making highly personal devices like your phone into ones that are spying on you. We have more than enough of that sort of thing informally. To make it official could only make things worse for everybody, Apple users and otherwise.

Since the whole thing was about photos being stored in the cloud, it would have been much less objectionable to put the scanning on the cloud side of things. At least that's actually someone else's computer and not someone using your own hardware against you.