The court order says Apple should make the software only work on the specific phone in question. Nobody could modify the software to work on other phones any more than they could make the changes to iOS themselves.
Apple is misrepresenting the situation and perhaps it's because they're afraid that in the future the government will come knocking again, but I think it hurts them to not be completely above-board about this.
Thanks for the heads up about these details.
As you mention if you agree to one request you agree to all requests plus proving you can do it.
A nice side effect of agreeing to this request would be to put an update that closes all the loops that allowed to perform the request on first place.
Apple is misrepresenting the situation and perhaps it's because they're afraid that in the future the government will come knocking again, but I think it hurts them to not be completely above-board about this.