> it can even be free. You either give us backdoor to all your users or you rot in jail.

It is already a thing, at least in UK and AU [1]:

> Both countries now claim the right to secretly compel tech companies and individual technologists, including network administrators, sysadmins, and open source developers – to re-engineer software and hardware under their control, so that it can be used to spy on their users. Engineers can be penalized for refusing to comply with fines and prison; in Australia, even counseling a technologist to oppose these orders is a crime.

[1] https://www.eff.org/deeplinks/2018/12/new-fight-online-priva...

1) Little Snitch is not based in the UK or Australia.

2) They are interested in software will billions of users. They are not interested in software with thousands of users.