1- tor is broken.
2- they know and use ways to get around encrypting. We got to give them some credit they knew encryption was an issue that at some point they had to dealt with. And they found ways to do just that from the beginning.
If I encrypt something client-side, the Patriot Act has no influence over it whatsoever. The only person who can decrypt it is me.
So, yes, they do need to break encryption. Especially as more and more apps move towards the "smart/encrypted client, dumb server as a storage dump" model.
The parent comment could be interpreted as "They do not need to break encryption as they do not need to prove guilt due to the patriot act, and breaking encryption is a dog and pony show when they can just hide you in Guantanamo or a Romanian black site."
Broken means it doesn't do what it claims, is assumed, or is known to do. I think the general consensus is that Tor is supposed to enable a person to browse the internet anonymously.
Are seatbelts and airbags broken because people still die in crashes? Most security mechanisms can be circumvented by a sufficient state actor. For most purposes, when not being targeted, Tor does its job.
