The only time these systems will work is when the perceived risk of snooping is greater than the value of account recovery. There is certainly a niche for this

The only time these systems will work is when the perceived risk of snooping is greater than the value of account recovery. There is certainly a niche for this, but it probably isn't very broad. The majority of internet users seem uncomfortable with surveillance, but accepting of it. I suspect the pendulum will swing if users no longer feel they have anyway to opt-out of surveillance. e.g. private browsing and other systems are recognized as ineffective, or sensitive data such as chat messages become broadly leaked and accessible to the typical user.