They're deliberately taking an extreme position in an attempt to force a fake compromise (which will ultimately wind up being just as catastrophic to the US software industry). This is a classic tactic, and it works.
Senate Committee on Candy: "Gum is a problem. Okay, life sentences for anyone caught chewing that evil stuff in public."
The Public: "WTF?"
SCC: "Okay, you're right, that's a little harsh. Let's meet in the middle and make it only a $100,000 per stick fine."
The Public: "Whew!"
... and I'm guessing that any "compromise" would take the form of clauses along the lines of the FISA courts being able to rubberstamp people into compliance. In secrecy. In bulk.
I cannot help but wonder if one of the requirements for being on the Senate Intelligence Committee is that the spooks have dramatically compromising blackmail material on you. This would explain a lot. (On the other hand, I believe that Feinstein is a genuinely bad person, and we would be better off without her).