Everyone understands that Apple can do anything with unencrypted content, but now Apple can also identify encrypted content because they make the phone hash it before it's encrypted. Apple is essentially lying when they say this can only be used to identify child abuse material because it can clearly be used to identify whatever Apple tells it to identify. The system doesn't care if it's used to target whistleblowers or child abusers. Apple doesn't even need to know what content they are made to target. The government could just give them a hash and demand to know who has a file corresponding to it, with zero risk that an Apple employee will leak anything the government want to suppress.

There is no reason Apple can't give you E2E encryption without any backdoors or spying features. They should act on abuse when it's reported to them by someone who can give them the key, but otherwise not concern themselves with the content that's stored.