And they would have likely taken all your shit as a punitive measure had you not complied. (I, too, run FDE on everything I own at home.)
All things considered, this dude dodged a bullet. I don't know if he was acting under the advice of counsel, but he came out relatively unscathed. This time.
This might be a shot across the bow designed to frighten those without the deep pockets of Apple. Just a reminder that The Man still has teeth when it comes to the 99%.