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> Why would anyone continue to use a communications application that's known to do this?

Network effect. Most people are not using Whatsapp because it is E2EE, they are using it because all their friends are.

Not sure if terrorist and organized crime are influenced by the "Network effect"...and it's because of them right?

Even if true it seems it could still create a smaller haystack.

Of freedom activists or terrorists? Or is that a viewpoint thing?