Re: Is this how far we have sunk?
"Charge him with something, or give his stuff back."
One of the things that the judge determined, beyond reasonable doubt, is that it's not all his stuff and that there is stuff there for which ownership cannot be determined without his co-operation. The judge is saying that until Love choses to decrypt the information in order to make a decision if the content belongs to him or someone else he can't have it. He is being asked to prove that he owns the data he claims to own.
Love is in the situation of someone being in a hotel where someone has stolen a diamond. He wants to take a sealed container in his possession out of the hotel, stating that there is nothing in it other than stuff he owns. But he's refusing to open the box. Forensics show that the box had been at the scene of the crime. Police are therefore not willing to let him leave with the box unopened. He can leave the box in custody or he can open it and prove it contains no diamonds then he can leave.
Actually it's worse than that, because the evidence to-date shows he was in possession of "quite a bit" of other people's "stuff" like credit card details and personal data. He certainly not entitled to have continuing access to that "stuff".