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Gmail already offers E2EE for organisations since 2022. You can have your own keys and everything is locally encrypted/decrypted in the client. Google servers only see the header.

Yeah, mail not controlled by the user will still be not E2EE, since gmail needs to store it. What this could do is force mailing providers to use encryption (I do not know of a major one that doesn't)

It is technically possible to add all the support necessary to work with PGP or S/Mime encrypted emails directly in the client. I.e. protonmail implemented this.

I mean, PGP and S/MIME are the two standards in this space. Both have significant deployment challenges and don't really match user needs.