Why not combine their forces and get rid of this massive problem once and for all? I say go for it since it's been so ridiculous lately. If we have the money and the resources for those two entities to combine for the better of the country and both parties agree, then I say that we should.
I do not think that the government should be using our technological persona as a way to spy on the things we do. Does the government need access to my GPS data, my Google searches, and my facebook profile? I think that the tech companies and government agencies should stay separate.
When it comes to the average person, they should not have to worry about the government or some technology company constantly being able to check everything they're doing on their phones, computers, and other technologies. However, when it comes to suspected threats, I believe that these entities are justified in working against an encryption service to keep others safe.
It is a dangerous world when corporations and governments actually combine forces, but that should not stop them from sharing technology to combat problems. Companies could waive certain proprietary claims and loan software to governments for example. Once they completely join forces though, a line has been crossed that we may never get back even once the threat is gone.