*I don't see how this scheme would work with contextual based
advertisements? Or maybe you are talking about a premium subscription
service that does not rely on advertisements for revenue. (?)*

>From OP, "The only downside of this approach is that email providers are
not able to filter spam or provide related Ads based on email content. Even
this might be solved in the future because of private outsourced
computation"
Private outsourced computation will let you search Google without revealing
to Google what you searched for(thus getting the Ads). However, this
cryptography function is still in experiment, for now, Google might provide
Geo-location ads or just show ads from users' search history,etc
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