It has been reported everywhere I've seen it. It's pretty clear that it means Apple will be able to give information that you have let them give by storing it on iCloud.
Apple gets to sell more phones due to this perception, the FBI get to continue hoovering (no pun intended) up iPhone user's data, and everyone goes home happy. It seems to be a manufactured controversy, with Apple & the FBI both playing their parts and knowing full well the rules of the game haven't changed one bit.