@Richard: "No - the point is that currently ONLY the criminals and terrorists are using encryption".
I strongly disagree with this absurd statement as it simply isn't true. On a daily basis I access my Linux servers at my home using SSH. Does this make me a criminal? Would it be preferable if I used telnet instead? The emails I send my business partners are digitally signed and encrypted. Does this indicate criminal/terrorist activity? Not to mention my online purchases and online banking - this is always conducted over (surprise, surprise) an encrypted connection!
I predict that if this Bill passes (which it will) and there is an exodus from unencrypted P2P services to encrypted P2P services (which has already begun), then within a few years the use of cryptography by normal every day citizens will be outlawed. Governments will regulate the use of cryptography, and citizens will be required to apply for licenses and to register their private/public keys with the government (because we can trust them, right? They only want what's best for their constituents and they respect the freedoms of individuals, right?). Any of you whipper snappers old enough to remember the NSA's "Clipper" chip (http://en.wikipedia.org/wiki/Clipper_chip) and the concept behind "Key Escrow"?
This Bill has wider reaching implications that no-one to date has brought to light. It's something we (law abiding citizens) should all be concerned about.