What happens on your iPhone stays on your iPhone
For the most part, this is still accurate*. Apple will only scan images destined for iCloud Photos.
By design, this feature only applies to photos that the user chooses to upload to iCloud Photos … The system does not work for users who have iCloud Photos disabled. This feature does not work on your private iPhone photo library on the device.
(First screenshot)
As much as Apple is an actual piece of shit, this is completely unsurprising. Take a look at the very first sentence in their FAQ explaining "the difference between communication safety in Messages and CSAM detection in iCloud Photos"
The second feature, CSAM detection in iCloud Photos, is designed to keep CSAM off iCloud Photos without providing information to Apple about any photos other than those that match known CSAM images.
(Second screenshot)
This section doesn't even fucking mention protecting children. They likely wanted to start scanning photos uploaded to iCloud (not sure if they do already) in order to more effectively protect themselves from CSAM-related lawsuits, like most companies that host user-generated content, but decided it would be better to hijack the customer's device into doing this for them.
And of course Daddy Cook thinks using the customer's property to protect his own ass is perfectly fine; in the end, all iPhones actually belong to him ¯\_(ツ)_/¯
* Except for the part about notifying authorities of course