The violation of privacy requires some reasonable counterbalancing objective. Inspecting physical goods has the reasonable objective of preventing smuggling. And it's reasonable that if you have something you really want to keep private (say you're a transvestite and don't want to come out), you'll leave the embarrassing material at home.
A phone or other electronic device, on the other hand, can contain all manner of private information. It's a much deeper invasion of privacy than just searching somebody's luggage. Deleting all that information just to be able to travel would constitute a considerable burden for most people.
The counterbalancing objective (I guess preventing the smuggling of child porn or something like that?) is much weaker. There are so many other ways of smuggling data that these inspections aren't likely to lead to any positive results.
So you have a much greater invasion of privacy vs. and a much weaker reasonable objective for needing to perform the search. I don't think the crown will win this, or at least I hope they won't.