Apple is being ordered to do something that's never been done before that will obviously have tremendous implications on personal (and even governmental) privacy everywhere on the planet, not just here in the US - the past events where Apple has complied are entirely different in scope than from what's happening right now in this situation.
This is where we disagree.
My understanding is that you believe as many others, that this will have a tremendous impact on privacy all over the world and I see it, but not from this angle.
Most see this as governments being able to pry into everything. Well in most of the world they already can and do. China doesn't hide it, South East Asia and South West Asia it's a given in almost every country, the African continent is for the most part the same. Russia, Turkey, all the 'Stans and South and Central Americas. Only a good number of countries in Europe and North America and Australia hold any real opportunity for real privacy.
That being said, what I see from "perfect privacy" an unbreakable encryption is that as an individual I will never ever again be able to go to court and make someone who has screwed me over, pony up the proof. The Court won't be able to make it happen for me in the same manner as against me. That is throwing the baby out with the bathwater in my book.
As soon as the government gives up and says OK, you can have your perfect unbreakable encryption and the courts can no longer force Businesses who hold data for others, to release that data under a valid warrant, we are all open to a royal butt fucking. Your investments will disappear, your medical records will be sealed and any doctors notes on operations performed or medications prescribed will be locked away. We will never be able to prove such things as embezzlement, medical malpractice, nothing at all really.
Because a warrant issued by the court can be refused because the data is held by a 3rd party and encrypted.
Far too many people can't see this issue past the phone they hold in their hand to see the implications that extend to everything else there is that's digital.