Beyond the crypto architecture debate, I don't really understand how could anyone imagine a world where MS could just refuse such a request. How exactly would we draft laws to this effect, "the authorities can subpoena for any piece of evidence, except when complying to such a request might break the contractual obligations of a third party towards the suspect"? Do we really, really, fully understand the implications…
I know the police can just break down my door, but that doesn't mean I should be ok with some random asshole having my keys.