To me, this sounds like Apple engineers think encryption is "SO COOL!!" "what can we add this to?" We've done contact tracing, Air Tags, what else can we do this neat thing with? Its like all the engineers got around and came up with this CSAM, "For the Kids" and ran with it. Not realizing what it sounds like to a large portion of the customers. I bet this wasn't even on the radar of the top executives -- they probably didn't even really know it was being added. Just a line on a report that sounds innocuous and you just glance over.
Now, the plan is to try and figure out how to resolve the marketing. Step #1, at least try and make sure everyone knows Apple is not a bad guy. Which is why they are explaining the tech. Even if they back down, they have to prove that this was for good intentions which is explain the tech. Step #2, Whatever their go forward plan, either full steam ahead or figure out a coherent message as to what they are going to do. Because if they back down, the other half of the world will be upset, because "the kids".