The assumption in government (and of security researchers) right now is that every time you send an email, it gets read by 25 or so countries. However, they haven't bothered to tell the general public this yet. My guess is that they are going to use this incident to either start to break this news to the general public, or else push through additional computer security measures. Possibly both.
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-----END PGP MESSAGE-----My guess is that people who really, really want to protect what they saying and that they're saying it use nonsense spam as a steganographic medium.
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Edit: I don't know how effective it really is, but this seems to be the motivation for why spammers at least try this. Many more details here:
A password doesn't even fall under 'free speech', so even in a free country like US one can get slapped with 'obstruction of justice' if one doesn't provide a password. I'll leave it to your imagination to what happens in other, more oppressive countries...
But I guess that large webmail providers can band together and ensure that e-mails between their systems are encrypted (i.e. all messages sent by gmail to other gmail addresses or hotmail addresses are encrypted).
Then users would just use HTTPS to check their mail and everything would be encrypted.
This is not perfect, but it is at least a stopgap.
On the flip side of your statement, I think evil, oppressive regimes hire very smart and talented people.
This has nothing to do with breaking crypto. The breaking is done in an oubliette.
Or, they'll use a TEMPEST attack to read your screen without you even knowing it. Or they'll use a similar attack to read your keystrokes wirelessly.
Or, they'll get you in a room and use a $5 wrench on your face until you tell them what they want to know.
Breaking encryption is far down the list of techniques that are worthwile to oppressive regimes.
Once you've carried out this analysis, you know on who you can apply the more realworld techniques that you suggest.
There were some articles last year (or maybe it was 2008) about textile manufacturing in the US, and how the Chinese were subsidizing them to the point where even if the US workers worked for free, the US plants could not compete on price.
To understand how much manufacturing changed, I recommend reading The Box. The shipping container totally changed everything by reducing shipping costs by about 98%. A lot of cities that used to be manufacturing centers (such as NYC and Detroit) withered, and a lot of cities that used to be shipping centers (such as NYC and London) also shriveled up because they could not support container traffic.
http://www.amazon.com/Box-Shipping-Container-Smaller-Economy...
It is a cascading failure.