Hashing expert here. Here’s where you miss the mark. You are essentially saying their entire argument is moot because they don’t understand hashing.
Hashing isn’t the issue here. It’s the list they compare it to. That’s where the vulnerability for abuse can happen. In one country, could they be comparing hashes to a list of banned memes? This system cannot exist on-device. I’m all for protecting apple’s servers, but my device should be private
But why would you store anti-government meme images in your iCloud Photo Library if you live in a country with an authoritarian government?
Also, if you're looking for similar images, which would me much more effective with meme images, there are much more potent solutions like the one already implemented in iPhoto.