I used to do freelancing for an ICT magazine and in early-to-mid 00s ran some numbers, as part of an article I did on limitations of applied cryptography. You can't do 1024-bit math on 32-bit or even 64-bit integers. Not without bignum libraries, which in turn make use of applied number theory. Under the hood the multiplication of two large numbers is an O(n^2) operation.
Performing an RSA or DH calculation with decent desktop computer in ~2003 took about 20ms with a 1024-bit number, and 80ms with a 2048-bit number. IIRC the first was expected to be theoretically breakable in a decade or so, assuming Moore's Law held true. The second was thought to be computationally infeasible for at least 100 years. These days the professionally paranoid use 4096-bit keys. (Or more recently, the nice 25519 curve which is more compact.)
So raising the security margin from "reasonable" to "paranoid", back in the day, would have required 4x the hardware investment to serve the same amount of traffic, and it would have imposed severe latency issues for everyone. We also have to consider the fact that most commercial secrets have a shelf life of years to a couple of decades. So before "E2E for everyone" became a thing, there simply wasn't widespread interest for crypto that could protect personal secrets for a lifetime.
With regards to using cryptography for personal privacy, cypherpunks were well ahead of their time. It's only become a mainstream issue in the last 5 years or so.