Your data should be encrypted on Apple's servers and unreadable by them; rather, this is my desire from Apple. They are likely bound to scan and detect for this

Your data should be encrypted on Apple's servers and unreadable by them; rather, this is my desire from Apple. They are likely bound to scan and detect for this kind of abusive content. This handles that client-side instead of server side, and if you don't use iCloud photos, it doesn't even affect you. If syncing? Sure, decrypt it on device and check it before uploading - it's going to their servers after all. Don't want to even go near this? Don't use Message or iCloud, I guess. Very possible to use iOS/iDevices in a contained manner.