I don’t have a huge problem with this. Why make it easier from the criminals to share information. (Note: I’m not in favor of being able to wiretap without cause, but if there is a court order, I’m OK with it).
You say it will only catch the stupid criminals … but there are a lot of stupid criminals out there. The Blago tapes, for example (if I’m not mistaken, he actually commented about the likelihood of lines being tapped and still said stupid stuff).
Tough on startups? Perhaps. And maybe there should be exemptions until something is X years old or has Y number of users. Or maybe the companies could figure out what the hackers are using to spy on their users :)