Perhaps the middle part of the argument is missing?
People who care about privacy == people who use encryption. People who use encryption already have all of their communications flagged and stored, if the rumors are true.
I disagree. This surely applies to the tech sector, but what about the wider world? Many people have all sorts of privacy habits (close curtains, have tall fences and hedges, they shred their mail or don't discuss wages, etc) yet don't understand or practice anything similar in the digital world.
