Ubiquitous encryption will be pointless if the encryption itself is subverted, like it was for 50 years with the 2 leading Swiss encryption vendors. I imagine the CIA/NSA would target the PRNG hardware as the crown-jewel, and the next-best targets would be "enclaves", then back-dooring the algorithms themselves (or implementations thereof).
Remember - their aim isn't to break encryption (which would be simple to spot) - it's to make it easier for them to break, while remaining hard for everyone else.