So two words I can't find in this thread are "lawful intercept". If a judge comes down on Apple and says they are required to produce your private content, is Apple going to throw up its hands and say, "Nope, it's e2e encrypted." No, they will not. They will either run something on your device to scan it, or they will exfiltrate your encryption key, because at the end of the day they own your device. Maybe this makes it harder for man-in-the-middle attacks or whatever, but if someone with the right amount of power cares, your data isn't secure.
so that means if your iphone breaks or gets stolen the data is lost? I guess they would have to enable exporting the encryption key to users to make the backup useful in these cases.