I'm with Apple here.
By looking at the case alone, it seems like Apple should help to unlock the phone to extract whatever information within. Many people feel that Apple is wrong for not doing this- I feel the same too!
However, when you look at the broader picture, if Apple decided to help this time round, it will set the "first example" and in future the government can make use of this "example" to request phone makers for whatever they want...
I inclined to agree with you.
But you have to realize that what the government is asking Apple to do, or the warrant they are trying to use is the most ludicrous thing ever. They are expecting Apple to reveal information that they have no way of giving, because that phone doesn't have any "back doors" and they don't have a way of retrieving the info they want... What the government is then asking, is to force Apple start producing phones with back doors from here on out, which is even more ludicrous. Anything you search on your smart phone which is deemed "suspicious" allows them to stalk you for as long as they please.
Keeping phones private without allowing back doors is way better for the innocent than the guilty for actual "terrorism" because "terrorist" with knowledge of hacking could then find these back doors themselves to retrieve personal info on anyone with that phone and can be even more of a threat to your average joe.
Allowing the government to force Apple into this is definitely not the way to go.