Wikipedia has the terms the FBI demanded, and to me they look like demands relating to software directly in iOS, not some other security chip[4].
>Apple is also under the eight ball with the threat of anti-trust regulation and are more incentivised than ever to make deals that turn down the heat on questionable business practices.
Questionable business practices impacting competition/monopoly, sure. But I don't see how a backdoor would make anyone think Apple has less of a monopoly.
>They lost all credibility as a "security focused" company with their crazy on-device image scanning scheme.
Apple publicly announced that in advance. That's different from a secret backdoor.
[1] https://en.wikipedia.org/wiki/FBI%E2%80%93Apple_encryption_d...
[2] https://en.wikipedia.org/wiki/IPhone_5C
[3] https://apple.fandom.com/wiki/Secure_Enclave
[4] https://en.wikipedia.org/wiki/FBI%E2%80%93Apple_encryption_d...