Gromit@Dogsbody2 "Not sure why you keep prattling on about metadata".
Ichkeria "There is a misconception that GCHQ, NSA are spying on everybody. What has happened is that communication has become such that it's impossible often to separate the comms of the good guys (us) from the 'bad guys' (everyone else, of course)."
Eureka! - someone who understands it. The key is metadata; the agencies hoover up all personal data from both good and bad guys in the form of metadata. Over the next 30 days from date of hoovering, it is trawled for pattern matching, and only THEN if matching occurs on metadata are the content of the messages examined further. After 30 days, Gromit's iphone metadata messages to his mum are all deleted.
There's a more in-depth explanation here, Gromit which might help your critical thinking.
http://www.theguardian.com/uk/2013/jun/21/gchq-cables-secret-world-communications-nsa
It even mentions the term metadata. Come to think of it, wasn't it the Guardian that acted as the mouthpiece for traitor Snowden?
So, as Ellipsis originally asked, is Apple correct to defy their Government's wishes? - no. And there's no reason for Gromit or anyone in the civil liberties band to be alarmed, because their comms won't get past the metadata test - unless of course they are involved in child porn, organised crime, terrorism etc. - all of which are sought using the same searching techniques.