I can't see them keeping this up for very long. They'll fold.
Or could there be secret back-doors built in, and this is all a ruse?
Yesterday's 'secret back-doors' are today's malware and forensic tools.
The news is not well stated. LE can still access your stuff. What's new is Apple removing itself from the loop. Previous keys for encryption were set to hardware identifiers, which is insanely bad idea in a cryptographic sense. Now it's tied to PIN or passcode.
That's the good news. Here's the bad news.
Apple wants you to be able to access media crap while your phone is locked. If LE has physical access, they can collect camera info, iTunes info and 3rd party app data. Even if the phone is locked. This only works with a computer that has a trusted pairing with the iOS 8 device.
So, even the bad news isn't catastrophically bad. If you are about to interact with the police or government entity, turn your iOS 8 device off. The pairing trick won't work if the iOS8 device hasn't been logged into since start up. Also, encrypt your laptop. You can wipe all pairing data by going to Network Settings in General -> Reset.
Use this set of intructions to force lock your iOS 7/8 devices, using Apple Configurator. It will significantly hose folks attempting to hoover your phone.
http://www.zdziarski.com/blog/?p=2589