Good for the New Yorker; I hope this catches on. Unfortunately, if the encryption is not end-to-end, the data is not secure. In fact, the NSA may choose to hang out and watch the unsecured traffic flow.
The New Yorker should make the traffic a little more secure by encrypting traffic (using https).
There have been past instances where similar weaknesses were exploited by sniffers: http://www.wired.com/politics/security/news/2007/09/embassy_...