Ok, So I spent the morning with my kid and we talked about this a lot. I now know more about what is going on.
The most important point: this phone is one of the old style Iphone's. It does not have the new style built in protections. I could pop this phone, the FBI could pop this phone, the NSA could pop this phone. And yes, even John Mcafee could pop this phone. The only IT type person that couldn't pop this phone that I know is @Casper.
So why is the FBI even bothering Apple about this is the question.
I am going to have to go with they want to set a legal precedent, to put Apple in a position to pop the newer style phones for them. And that is currently not doable, it will require Apple to send an update to all phones now, so they can be prepared to do so in the future. To create a backdoor for future use. And yes, the bad guys will find that backdoor. They always do. Hell the good guys will find it and post it on the interwebs.
I know that is pretty tinfoil hat, but I have no other explanation. I am open to ideas.