I give this idiocy a lifetime of four and a half hours after the first antivirus package has caught the FBI with its pants down in a criminal act. I'd also guess that that same AV package (particularly non-Aamerican ones) will enjoy a boost in stock value. What the FBI will enjoy I shudder to even think about.
The "Magic Lantern" concept is so old hat it isn't even interesting - criminals have been trying to get some mileage from this since 1992. At least. And get smacked down every time :).
Problem is that LEO's will never be able to hire the best and brightest, and even if they could, there is always a backdoor, what do they think we are anyway, accountants?