...providing the FBI with a signed iPhone Software file, recovery bundle or other Software image File (“SIF”) that can be loaded onto the SUBJECT DEVICE...Fortunately, the latest court precedent suggests that Apple's appeal to prevent this fiasco will be successful.
That can be interpreted in such a way that the FBI never gets physical custody of it, and it can also be clarified that this is the case in a subsequent or modified order. I'm pretty sure Apple's attorneys are up to the task of getting the Judge to rewrite it in such a way that it explicitly keeps any software out of the hands of the FBI or any other agency.
Fortunately, the latest court precedent suggests that Apple's appeal to prevent this fiasco will be successful.
You have more faith in the consistency of Judges applying "law" than I do. Maybe so. Maybe not.
But yes, it would be a great tragedy to mankind if information locked up on the phone used by a dead terrorist were ever revealed.