VPNs are also used for connections between companies, but for most of my (big-company) customers, they're primarily used for workers at home or on the road, especially since most of the country has broadband.
Meanwhile, the _really_ popular encrypted P2P is Skype. It's not the world's best crypto (mainly due to poor choices of strong algorithms, e.g. RSA instead of DH), and being closed-source you can never be too sure what's happening, but it's Pretty Good, and extremely widespread for home users.
I think that's an important point too. Even moderately strong crypto is a good thing because it forces them to make choices about where they will devote their resources. Even though the Feds can "print money" at will, reality eventually bites even them in the ass. So in other words, even if they can print money they will eventually run out of paper. That being the case, then using ANY crypto for popular apps is better than (and not equal to) nothing. Of course, the stronger the better, but those arguments that "they can break anything so why bother" are counterproductive at best and suspicious at worst. -TD