I'm extremely wary of any law that can be used to censor or otherwise remove material online, but one gripe i have with the Techdirt article is their assertion that hash matching is expensive or difficult.
Generating a SHA hash of an image when uploaded is very inexpensive in terms of processing, and there's already going to be a db somewhere that stores the image metadata, so it's not like putting the hash there is hard. Similarly, a simple No/SQL lookup for a known hash is incredibly simple and non-intensive.
The real issue is the lack of an appeal mechanism, the lack of penalty for, or legal mechanism to, ignore false reports (which should probably be about spam/ volume of requests, rather than single requests), and the lack of definition around what exactly a site must do to show good-faith, reasonable compliance.