Once the technological infrastructure is laid in place by Mr. Freeh, then it is available to future governments to abuse. Sure, there is a problem here. Modern crypto allows, for the first time, information to be placed beyond the reach of the collective efforts of society. And that has many implications, not all of them good. But look at cars.
Cars have a lot of bad implications for society.
There are a lot of negative effects of cars. They even help criminals escape from the scene of the crime. And yet most people are quite attached to their cars. Cryptography is like that. Cars empower individuals to control their own transportation.