My take is that this law would force companies to structure their services in a way that made plaintext recoverable. And then intelligence agencies could continue to use National Security Letters and their special secret court to get the material they wanted. Or do their fancy hacking.
In other words, a side-effect of the law is to outlaw NSA-hard security design, and that's enough for them.
In other words, a side-effect of the law is to outlaw NSA-hard security design, and that's enough for them.