I am a developer/owner of one of these "small local players". I provide ThreadThat dot com for free. I hope it helps some of those kicked off Lavabit.

I set out to create a SaaS app (ThreadThat) that makes encryption so easy that anyone can figure it out. I believe I accomplished that - at least users have told me so. I eliminated the dual key requirement, but that didn't make many embrace the app. Making encryption simple always results in some sort of compromise. In my case, it was server-side encryption, instead of browser (JavaScript) encryption. Most people don't know the difference. No matter, it doesn't make encryption any more attractive. There might be 1 in 100k people that are going to change how they e-communicate to protect their privacy. The new HIPAA/HITECH changes may force more people to encrypt for compliance reasons.