Why? It's a crystal clear agenda. The FBI has called for an end to effective crypto in the hands of US citizens.
This is where it will end, and perhaps rightly so. There is no physical space in the US where US citizens can hide from the FBI and other authorities. Why should there be a virtual space where US citizens can hide. US citizens are not free to hide from the authorities and the law.
"Why should there be a virtual space where people can hide from US/China/Russia/Saudi Arabia/etc."
I see no 'rightly' in this, at all. The end-game is an abject panopticon that makes the Stasi look like amateurs.
(Regardless of what Google, etc. may collect, corporations do not have guns or the ability to put you in jail. Not yet, anyway).