People will do what people can do. That said, businesses will do what they can to protect their revenue stream. They have a fiduciary responsibility to do so and I do not blame them. If their customers have a concern or fear that will lower sales, then they will align with their customer base.

That said, there is a bit of hand waiving going on here. The encryption does make it more difficult for folks in the field to connect a usb device to your phone and suck down all your data easily. I know a cop that uses one of these. He can also see where all his suspect are in real time using a Facebook app. If there is something on your phone that is desired, it can be pulled OTA (over the air) while your phone is powered on, regardless of encryption used, but that requires a warrant. That said, many wireless carriers will provide the data without a warrant. The engineers are told to do so and they certainly don't want to lose their jobs for a cause that doesn't affect them directly. Apologies to those of you that would not do this.