This is true as far as this specific case goes.Why are you making things up, Apple is being asked to unlock one phone, not to change anything at all about encryption on any other phone anywhere.
The Court: "Take this phone, unlock it, give us the data."
Apple: "No"
The Court:" Then take this phone, and make it where we can unlock it"
Apple: "No"
But what the government has not said is "Change iOS for all your phones, change your encryption for all your phones, change how you manage encryption for all your phones."
This may be the last phone a judge can order to be hacked as apparently the 5s and later iphones are much more secure (not sure about various Android phones).
The real battle is where the FBI wants current and future phones to have back doors.