That is rather major news, tucked down there at the bottom of the article. I see the Register have their usual editorial policies in effect. So the fact iPhone has become the only major phone to lock all user data away from everyone (i.e law enforcement agencies) except the owner gets a single, easy to miss, throwaway line at the end. Apple are removing all powers to decrypt content on your phone (other than your own obviously) and so are removing themselves for the equation and not allowing themselves to be compromised or pulled into the picture when law enforcement agencies want access to your phone. Google, Microsoft and Blackberry do not offer this protection.
Apple have already done the same with iMessage and most iCloud services, (though clearly the user should remain wary about how effectively law enforcement is locked out of those services as they don't physically control the hardware they are on).
The Register, this is important news and, actually, as much as many Fandroids will try to belittle the move, a very good reason for people who care about such things to buy Apple. It also raises some significant questions for further investigation, such as if they will be extending this protection to Chinese and Saudi Arabian users.