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My problem with this reasoning is that those dumb criminals would also be caught by an increased police effort. That makes the real choice of implementing this technology one between funding/effort and one of the most important human rights we have in a free society (the one to be assumed innocent until proven guilty), as opposed to the choice this is framed as: between waiving that right and catching those criminals.
Totally agreed. Setting aside the "what if" scenarios, they've come up with a really good system design that does what they say it does - provides far more privacy for your photos than the usual "just scan everything in the cloud" model that other providers employ. But IMO, unfortunately, it looks like it comes at the cost of fourth and fifth amendment rights. The frogurt is cursed, if you will.
Maybe that's a tradeoff that's worth it for some. I am... undecided. But I have a feeling if this is implemented without any lawsuits from EFF or whoever that we will start to see similar capabilities in all the various alternative photo applications from Google, Samsung, Dropbox, Facebook, etc. And on Android, too. It could become just part and parcel of having a mobile device, and there may not actually be any realistic alternatives that don't come with some kind of major feature or usability compromises.