The fact that they've decided to move this processing from their servers to the local device means they 100% intend to scan all of your photos and not only those that you upload to iCloud in the future.
I don't think they do. I also don't think they can easily decrypt icloud as you're making it out to be.
However... yeah. This is a massive breach of trust. Having any spyware agent on my device is disgusting. I can't imagine the abuse cases this sort of thing can be used for.
However... yeah. This is a massive breach of trust. Having any spyware agent on my device is disgusting. I can't imagine the abuse cases this sort of thing can be used for.