re: Law Enforcement upset about Apple and Google encryption

Yes. IMO reporting this as a swipe at the NSA is a misrepresentation. All it will prevent is a situation where the local police have grabbed your phone incident to an arrest and want to subpoena Apple/Google for a decrypt. This won't really affect the NSA because everything you do on iOS or Android goes through the phone company or ISP except for iMessage/gChat. And for those, the Lavabit example demonstrated the government will simply issue an NSL compelling them to cc their intake on the messages.

(The whole "keys are not stored off the device" is a red herring because key exchange is done through an Apple/Google server, not directly. So it would be trivial for the NSA to direct them to intercept these messages pursuant to a compelling NSL.)