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The faraday pouch will block thieves from using electronic tools to boost the signal from your keyless fob to attempt to steal your car. So police advice to use this is a good idea.
If they escalate by breaking into your house to look for the keys, then it may be better for them to find it at the front door than to walk all over your house looking for it and increasing risk of confrontation with people inside that could become lethal.
This is akin to common police advice that if someone pulls a gun on you asking for your wallet/purse, rather than risking further confrontation, you should just give them what they ask for because your life is worth more.
Consistent and common sense advice to me.
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