Until people lobby for these privacy rights to be enshrined in law, this will continue to be a problem. Defeating one bad law isn't enough.
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Only it doesn't. Even if you completely solved CSAM, authoritarians would still be proposing things like this to go after "terrorists" or copyright infringers or what have you. Claiming that people can't have privacy unless there is zero crime is just claiming that people can't have privacy, and that'll be a no.
Moreover, this proposal wouldn't completely solve CSAM. If the standard is that it has to be 100% effective then this won't work either.
Whereas if the standard is that something has to be worth the cost, then this isn't.