Heading into election year. Both parties want tech interests on their side. White House reluctant to have to take sides in congressional debate. The debate in congress not over. Recognized by Clinton administration since day 1 as a no-win issue.
Compromise opens community up to severe criticism at next terrorist incident that uses encryption.
Administration has been under constant pressure to do something. Used to dealing with telephone industry. Have someone to go to solve their problems. Net is simply not like that. There is no one to call.