This addresses none of the concerns. "We have designed processes" means absolutely nothing since the code is entirely capable of scanning any file on your phone

This addresses none of the concerns. "We have designed processes" means absolutely nothing since the code is entirely capable of scanning any file on your phone and sending matches up through their existing infrastructure. This feature must not exist on the customers' device at all. Continue running it in iCloud like you (and others) have been doing but leave our devices free of backdoors.