(Not picking on you in particular, but just using your post as a convenient entry point.)
A lot of people (including myself in the past) and newspapers etc have brought up this Franklin quote. I give you props for actually quoting it correctly as it was written in 1755.
However, that quote means almost the opposite of what most people think. It is not about giving up personal freedom whatsoever, but is instead about providing for the common defense.
-- THE BACKGROUND OF FRANKLIN'S LIBERTY VS SAFETY QUOTE:
At the time, the Colonies were having to defend their western borders from Indian attacks, by either purchasing their friendship, or by providing defensive weapons to the widely scattered frontier settlers.
Now, the Penn family was the powerful caretaker of most of Pennsylvannia, so when the Assembly tried passing laws to tax the family to help provide for the western defenses, the Penn family got the Governor to veto the law every time. However, the family said they were willing to donate a little money in return for never being taxed by the colony's lawmakers.
So what Franklin was saying, was that if the Assembly gave up their ability ("essential liberty") to pass laws and accepted the Penn family's proposal ("to purchase a little safety"), then the Assembly and the People who elected them deserved neither.
--
Ironically, if applied to the iPhone situation, it means that a rightfully elected government should not allow a powerful family (Apple) to dictate what they can or cannot be asked to do in order to help with the common defense. Otherwise, both the rule of law and everyone's safety is put at jeopardy.