>"Baker said encrypting user data had been a bad business model for Blackberry, which has had to dramatically downsize its business and refocus on business customers. “Blackberry pioneered the same business model that Google and Apple are doing now - that has not ended well for Blackberry,” said Baker. Baker is incompetent. Blackberry's primary advantage was its encryption. It branded itself as a business device and…
It's a great security model for businesses. For consumers, allowing "3 of 5 trusted friends" to do key recovery for you, with a 7 day delay, might also be a good model.
I actually have no problem with key recovery/key repository type systems (reluctant to say "key escrow" when it's not mandatory) -- as long as the users are explicitly informed and given a choice. For 99% of users, some kind of key recovery usually is the right choice.