It sounds neat, but I do wonder how viable this is commercially. How high do we rate the chances that governments around the world will step in before another kind of E2E is rolled out.

Encryption or not, if it's on somebody else's server, it isn't yours. I don't believe Google has my best interest.

One flaw with FHE is that it guarantees only that you need the key to see the inputs or outputs of the computation, but not necessarily that the computation is the one you want. For example, the computation could be adversarial for certain inputs, or an adversary could insert their own computation first (or last).

Does this rely on the Trust Me Bro model, or is there some way for the client to verify that the provider actually isn't able to see your inputs?

I want to read a whitepaper but all I can find is the tl;dw conference presentation