To search my home they need a warrant. Which means they need probably cause.
How is a cell phone any different? The law shouldn't be about storage capacity! If it is, then you're saying that they can search the 48 page notebook on the passenger seat, but the 128 page is off limits. That's ludicrous.
Now under the 5th, he should have the right not to unlock it for the police. But they certainly have the right to seize it.
The headline seems to be sensationalist and trying to surf the Snowden saga for readers. It's not related.
Edit: I'm ignoring the sanity of prohibition laws, but just comparing this story to common sense.