1) They don't necessarily need to break all encryption, just knowing who is talking to who and then delivering a tailored payload is their M.O.; The Tailored Access Operations division exists just for this.
2) They didn't build a Yottabyte-scale datacenter for no reason
3) They have the capability to compromise certificate authorities. Pinned certs aren't universal.
4) Speculation, but, Snowden's revelations probably set off an "arms race" of sorts for developing this capability. Lots more people started using Tor, VPNs, and more, so it would almost be dereliction of duty on their part if they didn't dramatically increase their capability, because the threats they are there to stop didn't disappear.
5) ML/LLM/AI has been around for a while, machine learning analysis has been mainstream for over a decade now. All that immense data a human can never wade through can be processed by ML. I would be surprised if they aren't using an LLM to answer questions and query real-time and historical internet data.
6) You know all the concerns regarding Huawei and Tiktok being backdoored by the Chinese government? That's because we're doing it ourselves already.
7) I hope you don't think TAO is less capable than well known notorious spyware companies like the NSO group? dragnet collection is used to find patterns for follow-up tailored access.
None of your proposed solutions are stealthy enough to enable bulk collection at a pre-Snowden scale.
Yeah, they can still collect lots of useful metadata.