WhatsApp “end to end encryption” messages not encrypted after all

WhatsApp claims to offer end-to-end encryption for private messages. The problem is that a recipient of a message can flag the encrypted message, which then makes it viewable by WhatsApp employees on the backend for review. Except it's worse than that even: the moderation and review of flagged messages is outsourced to a different company completely. Is "encryption" simply a marketing term these days if data can be easily copied and seen by humans?