The choice was between "we will upload your pictures unencrypted and do with them as we like, including scan them for CSAM" vs. "we will upload your pictures encrypted and keep them encrypted, but will make sure beforehand on your device only that there's no known CSAM among it".
> we will upload your pictures unencrypted and do with them as we like
Curious, I did not realize Apple sent themselves a copy of all my data, even if I have no cloud account and don't share or upload anything. Is that true?
No. The entire discussion only applies to images being uploaded (or about to be uploaded) to iCloud. By default in iOS all pictures are saved locally only (so the whole CSAM scanning discussion would not have applied anyway), but that tends to fill up a phone pretty quickly.
With the (optional) iCloud, you can (optionally) activate iCloud Photos to have a photo library backed up in the cloud and shared among all your devices (and, in particular, with only thumbnails and metadata stored locally and the full resolution pictures only downloaded on demand).
These are always encrypted, with either the keys being with Apple ("Standard Data Protection") so that they're recoverable when the user loses phone or password, or E2E ("Advanced Data Protection") if the user so choses, thus irrecoverable.
It seems to me that in the latter case images are not scanned at all (neither on device nor in the cloud), and it's unclear to me whether they're scanned in the former case.
Apple doesn't do this. But other service providers do (Dropbox, Google, etc).
Other service providers can scan for CSAM from the cloud, but Apple cannot. So Apple might be one of the largest CSAM hosts in the world, due to this 'feature'.
> Other service providers can scan for CSAM from the cloud
I thought the topic was on-device scanning? The great-grandparent claim seemed to be that Apple had to choose between automatically uploading photos encrypted and not scanning them, vs. automatically uploading photos unencrypted and scanning them. The option for "just don't upload stuff at all, and don't scan it either" was conspicuously absent from the list of choices.
Why, do other phone manufacturers do this auto-upload-and-scan without asking?
I think FabHK is saying that Apple planned to offer iCloud users the choice of unencrypted storage with server-side scanning, or encrypted storage with client-side scanning. It was only meant to be for things uploaded to iCloud, but deploying such technologies for any reason creates a risk of expansion.
Apple itself has other options, of course. It could offer encrypted or unencrypted storage without any kind of scanning, but has made the choice that it wants to actively check for CSAM in media stored on its servers.