What they want is to be able to wiretap people, without them knowing. Because if encryption is what's bothering them, you can get a warrant, seize the phone and/or computer, and make the owner unlock it / give you the keys, by law.
It is perfectly logical and lawful. However, if unwarranted (in the sense of without a warrant) wiretapping is involved, then yes, encryption "hinders the law enforcement". Except it doesn't. Because as mentioned earlier, just get a warrant, and make the owner unlock / give you the key, by law.
It doesn't hinder the law enforcement, it hinders the intelligence agencies work and makes it less invisible. And I kind of think that's a good thing too.