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Apple approaches it different with iCloud. You have a clear option to not hand these keys over.

It shows that your idea of how the market works clearly is not representative of the actual market.

[scoofy]

You realize the famous case of Apple pushing back against the govt ended because their encryption was breakable by a third party, right?

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There are some errors in what you write, and despite that, it is not clear to me what the supposed ‘realization’ would be.

1. The famous 2016 San Bernardino case predates Advanced Data Protection technology of iCloud backups. It was never about encryption keys, it was about signing a ‘bad’ iOS update.

2. Details are limited, but it involved a third-party exploit to gain access to the device, not to break the encryption (directly). These are different things and should both be addressed for security, but separately.

Evidently, after this case ended, Apple continued its efforts. It rolled out protecting backups from Apple, and the requirement of successful user authentication before installing iOS updates (which is also protecting against Apple or stolen signing keys).

There is a market here.