The problem is that companies expect employees to come and BYOD as a way to save on computer costs. Honestly, It has a combination of advantages and disadvantages for both parties.
The problem arises when misconduct occurs or is suspected. At this point, the law is still a bit murky, but has been leaning quite consistently in favor of the employer's right to protect itself against rogue employees. I don't like it but I can see legitimate applications at times.
I don't think that they should have a carte blanch right to the device, nor am I in favor of it per se. It's still being sorted out, but the trend seems to be in favor of the big guys.