This really isn't a case of hype, and I can't see any gray area here. Either a cryptographic system is secure, or it's not. If you build it in such a way that someone (the manufacturer, or anyone else for that matter) can compromise it -- call it a back door or whatever you wish -- then it's not a secure system, and parties other than those you intend to give access can use the same flaws.
If something is truly encrypted securely, then the manufacturer has no access to the data either.
If Apple creates a mechanism in it's OS to bypass the security features that protect against brute force attack, then their products will be susceptible to the same attack by some other party, and everyone will understand that the product (in this case, the iphone) is not secure.
That last part is why apple is digging in, they don't want to undermine their own business by demonstrating (proving) that their product is inherently insecure.
Actually, not everyone is in agreement. In fact, that's exactly what the magistrate is directing apple to do in this case.
Unfortunately, the anguish in this case is warranted and justified, and it goes way beyond this particular case. If the govt can compel you (or a company) to go out and build something that does not currently exist, to write code to do something you don't want, without any compensation and without you having any option in the matter, that's a pretty darn big deal IMO.
There have been many such requests previously, and apple has resisted them. It's no coincidence that the FBI and DoJ decided to pick this case as leverage to help them accomplish something they otherwise couldn't do. In this case they figure they can successfully use the "but...terrorists! why are you helping the terrorists! think of the children!" line.... and apparently they are right, the general public is buying the BS.