"The implications are big. The entire business model built on harvesting user data could become obsolete. Why send your plaintext when another service can compute on your ciphertext?"

Why do people always do this thing where they think inventing a technology has somehow changed economics? I think the implications are very small. There is value in people's user data and people are very eager to barter that value against cheaper services, we can tell because people continue to vote with their wallets and feet.

You could already encrypt or offer zero retention policies on large amounts of internet businesses and every major company has competitors that do, but they exist on the margins because most people don't take that deal.