Suppose Apple flags some image in iCloud using a hash that was probably sent from the device. Do they currently have the capability to decrypt the image to check if the content is actually illegal before reporting it to the authorities without needing access to the physical device?
(Not trying to make a counter-argument to your comment. I genuinely don't get this part).
(Not trying to make a counter-argument to your comment. I genuinely don't get this part).