Today it's only geared toward iCloud and CSAM. How many lines of codes do you think it will take before it scans all your local pictures?
How hard do you think it will be for an authoritarian regime like China, that Apple bends over backwards to please, to start including other hashes that are not CSAM?
iCloud is opt-out. They can scan server-side like everyone does. Your device is your device, and it now contains, deeply embedded into it, the ability to perform actions that are not under your control and can silently report you directly to the authorities.
If you don't see a deep change there, I don't know what to say.
I live in a country that is getting more authoritarian by the day, where people are sent to prison (some for life) for criticizing the government, sometime just for chanting or printing a slogan.
This is the kind of crap that makes me extremely angry at Apple. Under the guise of something no-one can genuinely be against (think of the children!), they have now included a pretty generic snitch into your phone and made everyone accept it.