You are right, people care. But not about things that would make reducing government power likely nor encrypting things by default probable.
They care about getting to work in the morning and getting home at night. They care about dinner with the family and a couple hours mindless television. They care about being safe while they do these things, and they've fully bought into the government's mantra of "we will protect you", so, as long as that's happening, they don't care about anything else.
Go talk to just about anyone outside of sites like Reddit or HN about the TSA, and you will be told how good a job they are doing. When the government tells them it is time to randomly drop their pants for the cavity check, as long as they are told it is making them safe, they will willingly oblige.
As much as the government's power grab, the complete lack of concern for it scares the hell out of me.