If the intended purpose is to lead by example and eventually mandate code on every computing device (phone and computer) that scans all files against a governme

If the intended purpose is to lead by example and eventually mandate code on every computing device (phone and computer) that scans all files against a government provided database, then yes, that purpose still exists and this algorithm still works for it. Just wait and watch - I guarantee you that Apple will be talking about CSAM in at least one anti-trust legal battle about why they shouldn't be broken up. Because a walled garden means they can oppress citizens on behalf of governments better.