It does. However people have a greater expectation of privacy on a device they own than on a cloud-based solution where they have voluntarily uploaded content.
If the fingerprints between an actual CSAM photo and a cropped/resized/grey-scaled version can match, it implies that the fingerprint is essentially composed of smaller fingerprints of tiny squares within a picture, as well as of fingerprints of the entire image in both its original as well as grey-scale form. It probably will also need to allow for rotation.
With all of these possibilities allowed, either the matching technology will miss most slightly-deformed matching images (criminals will quickly find effective minimal distortions), to avoid too many false positives, or will end up matching too many of people’s personal images that consist of their young kids in a state of undress (whose parents don’t have a picture or 2 of them in such a state from their childhood?).
So, either this technology is ineffective and not worth the potential misuse, or it is a grave threat to privacy.
I have generally been skeptical about joining Uber. I was in the job market a couple of months back and was always apprehensive when interacting with their HR. I have received recruiting mails from them indicating that I would be lucky to work at Uber, instead of the opposite tone in general. Uber is probably losing many potential employees due to this.
There is no answer to the retort that Uber is successful. If that was the only guiding light for humanity, then we should just be living as savages surviving on who can punch the hardest.