Secondly, why are people OK with this law?, if they are ok with it, then why have encryption at all? Ban cryptosystems all together.
Why have locks when there are search warrants? Stop avoiding this please.
The case of locks on doors is not applicable to cryptography. While it is true that a lock can represent an encryption scheme, its not applicable here.
Reason is this:
What is reasonable suspecion here? What does the officer present to the judge as reason that he or she wants the warrant to search what is inside the lock? In a typical senario, the judge would have to be presented with evidence , such as "well judge, we smelled illegal substance in some place with a lock and we need to unlock it to see where the smell comes from", or "well judge we hear a woman's voice screaming in a house that is locked, and we need a warrant to get to the bottom of this". This is reasonable, that means that the lock is only a physical lock, and not a true lock in the sense that it locks the inside from the outside (including sound,thermal etcc..(closed system)).
In the case of a file that is encrypted, there is no way an officer can "reaonably suspect" that such encrypted file has important national security information for examlple. Because he has to present to the judge something real, something tangeable for the judge to issue the warrant.
Hence its not applicable here. Because an encrypted file is a totally closed system, that does not tell what its "locking" nor hints at it, where a reasonable expectation of privacy applies.
Hence, its not applicable.