Earlier quoted context omitted.
The choice was either eliminate it now (globally, via introduction of a backdoor) or eliminate it in the UK (but keep it globally). So, perhaps this is a bit of a dangerous precedent, but it was the least-bad option.
That’s a false dichotomy. Another choice, however unpalatable to all parties, would have been for Apple to stop doing business in the UK.
This is still better than a back door but it sets an awful precedent.