This kind of nonsense needs to stop - quickly.
Yes. Even in the U.S., where we love our free speech rights, we have concepts such as slander, libel, defamation of character, harassment and menacing. A key issue in some instances is whether a person is making a statement of claimed fact (e.g.: stating I'm a Nazi, when I'm not) vs. stating an opinion (e.g.: that his impression of me is that of a fascist). There are gray areas - such as doxing.
It is companies that provide devices and communications systems the allow the pictures to circulate and it is clear they have no intention of stopping the picture circulation which is evident by the lead plaintiff in the law suit who keeps getting notifications from law enforcement every time her child image is reported/caught.
Ironically, those pictures will keep circulating regardless of whether Apple implements such a system.
There is a key principle in play here that we need to be mindful of - the moral, ethical and practical tradeoffs of a privacy-protecting vs. a surveillance state.
You say companies provide devices and communications systems that 'allow' the CSAM pictures to circulate. And the cable, fiber and satellite systems that relay Internet signals do so. If anyone is using DSL, the phone system is doing so.
It is true that automated systems scanning for objectionable content would lead to catching more malefactors and likely reduce (not eliminate) some illegal behaviors. But why stop at photos? If you and I talk on the phone and one of us mentions 'drug deal,' perhaps AT&T should have an A.I. system record and flag that conservation so a staffer can listen and decide whether we're discussing an episode of
Breaking Bad or arranging a narcotics transaction.
Not so long ago, I watched video of Senator Ted Cruz caustically grilling Mark Zuckerberg of Facebook. Cruz wanted to know whether if someone got on Facebook and did a search for child porn the system would flag that for somebody to review (IIRC). That may sound needful. Thing is, let's say he ticked Zuckerberg off, and later out of legitimate concern Cruz decides to see for himself just how easy accessing CSAM is, and it gets flagged. A staff member tips off Zuckerberg, and before an upcoming election Zuckerberg has his people send the police a list of people trying to access 'child porn' on Facebook - including Cruz! Shouldn't be too hard to make sure a liberal media outlet that doesn't like Cruz gets wind of it. In this scenario, Cruz did no wrong and Zuckerberg broke no law, but the consequences could be serious. Disclaimer: that's a hypothetical scenario I made up to make a point.
I get that the perceived security benefits of a surveillance state appeal to some people. Public cameras with facial I.D. technology come to mind (which I'm told are used to some extent in China).
But how monitored are you willing to be?