I don't agree that it improves privacy.
Pre-emptive searches of ones private life should never be ok. Even if it's done by some "blind" algorithm.
And we should stand firmly that our phones and personal electronic devices should fall within the legal boundaries of private life.
We've already accepted some bad legal precedent with 3rd party doctrine and related loopholes, no expectation of privacy justifications, non negotiable ToSs that surrender ownership of data, and sharing of private data obtained under pretenses of it being required for whatever service you're signing up for.
With apple running privacy invading software on the users device, how long until a judge declares that there's no expectation of privacy by plugging information into your phone. After all apple is a 3rd party, and you were aware that they are scanning all files, which create new linked files owned and decrypt-able by apple.
There might be a short-term technical gain, but there's a long term legal and privacy loss.