All of the other options have drawbacks too. With Fastmail or another provider, you're trusting another corp. Setting up your own involves a bunch of work and difficult to solve drawbacks like spam filtering. I'm also not sure that it's harder to compromise in the grand scheme of things. There are horror stories of people losing domains too.
I think this is a prime case of out of touch governments failing to keep up with regulations. My email is part of my identity at this point and more valuable than any of the plastic that has been assigned to me by the govt. I can't think of much in my life that would be more painful to lose than that email address. Yet, we are all so powerless...