Since we know that the encyption is rarely the weak part of the chain
A more general move to encrypted comms will prevent large scale eavesdropping. That seems like no bad thing. For all the bluster about it preventing the security services doing their jobs regarding the usual suspects, the result is, that it will make little difference.
After all, they can still get a court order and go and demand the intermediate host (facebook or whoever) hand over logs for a given user, or they can lean on the various other weak points in the system where the information is in plain text (bugging your PC if they need to). What they won't however be able to do is a general fishing expedition with bulk data mining to try and fit "crimes" to recognisable patterns of behaviour (bad for the 1% of cases where they have spotted a real crime, but good for the 99%+ false positives). They will need to focus their investigations on cases where there is a genuine interest / intelligence, or an established investigation. This is how things were before they got sold on the technocrats wet dream of being able to see everything, any-time, anywhere, without needing to put any effort into it.
As for the "If you have done nothing wrong, then you have nothing to hide" brigade, lets put this one to bed once and for all. What you say is right, *if* you can fully accept the two fundamental principles that the logic is founded on:
1) That the people you are entrusting to look at your data can be relied upon 100% of the time to keep it secure and private, and;
2) that they will only every have benign intent (and that includes anyone or group that may be able to influence, infiltrate, or hack said organisation).
Hopefully our current government and civil service have ably demonstrated that 1 can't be relied upon (copy of a HMRC CD anyone?), and anyone who has ever heard of a minion being bribed / blackmailed / tricked into disclosing personal information should realise 2 is impossible to guarantee. (and that was before unsecured and unofficial wireless LANs were making a broad range of "secret" civil service IT systems visible to the man in the street (literally!))