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Absolutely, look at the threat model. You're not worried about someone breaking into your computer, you're worried about your ISP legally reading your email.

Guaranteed, and encryption is bait. Use stego.

That's very true, however there can be operators you trust more than your ISP, eg. a group of friends running such forwarder offshore.

Until they're busted and open up... As Zappa sang, the hot iron sausage... and the sinister midget...