I think the better option is a system where the cloud provider cannot decrypt the files, and they’re not obligated to lift a finger to help the police because they have no knowledge of the content at all
I would personally not knowingly use a cloud provider to commit a crime. That is a fairly naive take to assume because your browser is https that data at rest and in process isn’t somehow observable.
And I see where you’re coming from but I am afraid that position severely overestimates the will of US people to trade freedom/privacy for security and the legislature to hold citizens’ privacy in such high regard.