Earlier quoted context omitted.
Modern CIWS are designed to be effective against substantially faster and more agile rockets. Drones really are slow and easy to take down compared to guided rockets and especially kinetic ones, and the military has been working on means of defending against those for decades. The Phalanx is being modified to serve as an anti-UAS system, for example. The challenge is more to do with detection than firing.
Deploying point defense technologies over a city/civilian targets has some obvious problems, though. Lasers, electronic countermeasures, tangly stuff, etc, are much more attractive than systems that fire thousands of cannon rounds per minute or that launch explosive missiles.
Whereas naval Phalanx systems fire tungsten armor-piercing rounds, the C-RAM uses the 20–mm HEIT-SD (High-Explosive Incendiary Tracer, Self-Destruct) ammunition, originally developed for the M163 Vulcan Air Defense System.[26][34] These rounds explode on impact with the target, or on tracer burnout, thereby greatly reducing the risk of collateral damage from rounds that fail to hit their target.
Not that the risk is zero, but at least it's "greatly reduced".