You still think this was just about getting access to that phone for intelligence reasons? Are you telling me the FBI didn't even know about this Israeli security firm that could unlock iPhones? Because they obviously didn't even bother asking them before going to the courts.
Please. They backed off because they saw the wind wasn't blowing in their direction. The *last* thing they wanted to do was to lose this case and set a negative precedent.
Wish I had mod points. The FBI back down because they were about to have their ass handed to them in Federal Court, setting exactly the opposite precedent that they wanted!