Read it again.
The TITLE of the piece is "Police Now Can Switch off iPhone Camera and Wi-Fi".
The article says "The developers (Apple) insist that the affected locations are normally cinemas, theaters and concert grounds". Then, Apple ADMITS that it COULD be used for covert police or government operations. Not that they will allow it, or would use it. That they COULD.
But who cares? If you look at the photo, you will notice a PHOTOSHOPPED "Stop the War" sign in the background. The website is VETERANS TODAY. Do you think that maybe, this article is just trying to be oh, I don't know, a little inflammatory?
A similar article appears on Live Leak:
http://www.liveleak.com/view?i=27f_1377120245
where they say "All the coppers have to do is decide that a public gathering or venue is deemed "sensitive", and needs to be "protected from externalities" and Apple will switch off all its gear.". Um, not true... As if Apple will take a call from a cop who says "turn off data in my location". Give me a break.
At any rate, you don't need high tech to jam a phone:
http://www.infostream.biz
Sorry Android users... but if the cops or your next door neighbour some punk at a hockey riot want to stop you from shooting and uploading incriminating evidence of a crime in progress, they can do it with a cheap piece of hardware like this.
<iframe width="853" height="480" src="//www.youtube.com/embed/_VDrH1By0Ss?rel=0" frameborder="0" allowfullscreen></iframe>