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It might be cool, but it's also too little and too late. They've already alienated the majority of developers that would be writing apps for this platform.
Find my iPhone will play a tone for 2 minutes at max volume, whether the device is in silent more or not. You can also wipe or put a pass-code on the device remotely. The thief, however, could either disable that feature before you get a chance to use it, or simply turn the device completely off.
Did they also have a warrant to enter the premises and install a now untrusted server back onto a private network without even alerting owners of said network? It sucks to have your stuff seized. It also sucks to have your stuff tampered with.
Free as in beer: Beer is a physical object. When you get something "Free as in beer", you're literally getting something for free.
Free as in speech: Free speech is an ideal. When something is "Free as in speech", it's a freedom that is being granted.