I was assuming that:
a) Lavabit can't access its users' email, so any subpoenas are ineffective at getting at emails stored in their servers.
b) However, the feds would force them to snoop on decrypted data for specific accounts as it is served back to the user. This would only give access to what the user happens to read after the order goes into effect.
c) They received a new order that was a lot more invasive, perhaps to snoop on all plaintext data as it left their servers.
d) They suspended operations before any such snooping could occur.
If all this is true, any other operation can follow the same steps. If the feds ask for too much, we suspend operations immediately, no 7 days. But they wouldn't need to preemptively suspend before the feds come knocking. Is there something wrong with my reasoning? Were you making different assumptions?