On encryption, we also had another witness. The chair said we need to stop thinking about encryption in World War II terms, where you encrypted code and that allowed you access to state secrets. Now it's much different. He described how it was more dangerous to allow encryption then than the way it is now, because, as you said, you don't know who is getting in the back door.
Encryption is also a real challenge for law enforcement. Is there a middle ground on it, or is it either you live with it and you work around it or you allow certain access to it?