Apple "caving" would've looked different; in fact, we probably never would have known, given the insidious nature of the underlying statute in the UK.
Apple is making noise about the fact that they pulled the product, and the tech press is making it clear WHY even though Apple itself is legally prohibited from giving any additional context.
I feel like that was probably the best move available to them given the cards dealt. Fighting in secret courts is unlikely to be fruitful.