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Maybe they can offer a choice?

You can pick

a) no backups

b) iCloud backups with E2EE and privacy preserving CSAM scanning as suggested by Apple (private set intersection, half client side, half server side)

c) iCloud backups, unencrypted, with CSAM scanning server side (like all other cloud services)

I know what I'd choose!

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You're forgetting the last option, which myself and others use:

d) encrypted offline backups that never touch iCloud

I don't use iCloud for anything at all. Any sort of client-side scanner seriously compromises my privacy for no good reason. I am not a criminal. I don't deserve to be treated like one.

If you don't use iCloud, then the proposed Apple solution (b) does not affect you at all.

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