You don't need CA's for e-mail encryption. You need keyrings and networks of trust (I exchange keys with my closest associates via offline means; I sign a certificate stating that I vouch for the authenticity of their certificates; my associates can then choose whether or not to trust the signatures I've signed, and whether to trust the signatures they've signed again).
Yes, there's room for infiltration, but it is vastly better than relying on central CA's for this type of usage, because it allows people you trust to contradict infiltrators.