UX continues to dominate all other market factors in computing by a huge margin.
Yes, Google added encryption but only because they were afraid of losing a competitive edge. They will still gladly sell all the information they collect (by monitoring emails, texts, phone calls, etc - which their right to monitor was defended in a district court) provided you have enough money. They are first and foremost an advertising agency. All their other services and products just serve to give them more sources of information.
None of this came as a surprise to any Congressman with interactions with Intel Agencies. Hell, none of this should have come as a surprise if you know anything about security/cybersecurity. As long as there are systems which hide info, there will be backdoors and people trying to break them.
The exact same things are being done by every "first world" government on the planet. And sadly, what they do is FAR less intrusive than what Google does. They make text documents out of your phone calls to try and find new products to sell you... They have copies of every text you ever made on an Android device, every site you have visited, every e-mail you wrote or received on Gmail... All the info the NSA gathered that Snowden was "abhorred" by, was less than 1% of what Google has on you. What's the difference? Google will sell it. The NSA may look through it, but they won't sell it to the highest bidder.
Every device Google makes is just another way to gather info on their users. They are, first and foremost, an advertising company. And they are the best in the world at that because of all the info they have on all their users.