"Yet Another US Government Brain Fart."
While it's easy to criticize the US for this, don't forget that Australia and the UK are already a few years ahead of the US in contemplating encryption bans or severe restrictions. I'm less familiar with other Western countries current policy plans but if we include Russia (key escrow already implemented) and China (encryption restrictions and use of bypass mechanisms for Chinese citizens) then given how US companies have pushed the use of encryption to protect foreign nationals, they should be given some credit.
I suspect we are seeing local/state US enforcement policies (likely drug related) potentially bleeding into national/foreign policies - once the large multinationals lobby against it, it will be dropped in exchange for the NSA sharing a little more data with them. While message contents are useful, metadata and targeted surveillance using existing methods can likely address the same problems to the extent that the US cares about solving these issues