Exactly, but that's because so few people are actually using end to end cryptography. Now imagine the internet giants had petabytes of encrypted data in their data centers. Apart from the fact that it's completely impractical because that data can't be used for anything other than downloading, it would give a huge boost to those in the government (or governments actually) who want to outlaw it.

From a somewhat elitist perspective I actually prefer the status quo. At least, today, we have backup services like SpiderOak or tarsnap and we can use encrypted email (I don't) or other communications software.