I submit that you have rather egregiously misread TFA. The antecedent of "They" in this case is the judge and other law enforcement fans. Felten's point is not to stipulate to their mistaken assumption, but to contradict it. That is, he shows how the threat represented by the court system is indistinguishable from that of various other bad actors. He doesn't spare Lavabit from critique either, by pointing out how better systems design would have better resisted the "insider" attack carried out using the courts.