I got curious about this, so I did some quick research. Again, IANAL, but my understanding is that, in the US, the court can order you to give up the physical key (if it is determined that you have it) but not the combination. The latter is protected by the Fifth Amendment right against self incrimination, in the same way as sharing knowledge verbally. So then the question becomes, is an encryption key (or passcode, etc) more like a physical key, or a combination? If the former, then you would be legally compelled to decrypt it if law enforcement asked you to do so. If the latter, however, then there is no legal way for law enforcement to force you to decrypt the device.
The legal framework for deciding how to handle encrypted data already exists, it's just ambiguous. Instead of passing a law that completely changes the scope and usefulness of encryption, doesn't it make much more sense to simply disambiguate and update existing laws accordingly? I don't know the full repercussions of that, but it seems that there exist less drastic solutions to the problem.
> I don't necessarily agree with that argument, but I don't think it's unreasonable.
I think it is unreasonable because it's asking companies to willfully violate their user's privacy and trust, and to severely undermine encryption as a whole. There is zero chance that this does not get abused.