Yes and this is a good thing. No organization, no matter how large or powerful, should be beyond the reach of the law.
That's a false dichotomy. You can hold an organization accountable to the law without requiring them to maintain a "master key" to your private data.
Ideally they wouldnt even have this key / the private data in the first place
That's a false dichotomy. You can hold an organization accountable to the law without requiring them to maintain a "master key" to your private data.