If you had an option to do so from inside the Gmail client, encryption would become much more mainstream. Techdirt [1] and ArsTechnica [2] had some good articles about it, although I disagree with TechDirt that they should offer "key management" for users. That would defeat the purpose - unless it's guaranteed to only be done by the browser, locally, and they wouldn't have access to that, and it could be easily verified that they're not lying. I think they sort of do this already for the master-password in Chrome.
I don't think these encryption options would hurt their ad-revenue much, and besides - I don't think Google, Microsoft or any other company should scour through my private messages to make their ads more relevant. I don't care how "anonymous" or secure they make it. It's okay if it's public data - but private data? No. Definitely not.
[1] - http://www.techdirt.com/articles/20121218/16095921431/why-go...
[2] - http://arstechnica.com/tech-policy/2012/12/op-ed-a-plea-to-g...