Earlier quoted context omitted.
He's thinking from a pragmatic, utilitarian mindset. He has no principles surrounding privacy. If it has to be sacrificed to get the job done that's fine in his mind as long as it's a net positive.
You can be pragmatic and utilitarian and support privacy and free use of encryption. I would instead qualify his mindset of shortsighted.
An honest utilitarian would be willing to share their calculations, which would be interesting to see, though I am not sure how you'd balance the interests in the cases described above.