I am not aware of hubiC encryption of customers' data, but we know the French State still occasionally spies on private data (though nowhere near the full-on scale of the NSA). I'd suggest you ask them if data-at-rest is encrypted, as well as data-in-transit. Coming from what may be the largest private hosting company that makes its money from selling actual service, I tend to consider them more trustworthy than Google.
Regardless of my opinions on government spying and the NSA, I personally don't encrypt to protect myself from the government for a couple of reasons. First, I'm a government contractor (not LE or Intelligence), so I voluntarily submit to their watching what I do at work. Second, if the NSA or FBI wants to get my data, they're going to get it somehow. Since they already know a lot about me (that I voluntarily submitted), so there's not a lot of point in hiding my computer activity. (That doesn't mean that I condone the warrant-less spying).
The reason I encrypt my data is for personal security/ identity theft. I have secure passwords, tax returns and other potentially sensitive personal information that an identity thief could go after. Layers of encryption (1Password database, secure disk images, local & cloud encryption & SSL) are ways I try protect myself from that. Almost all of these features are automatic, or require very few steps to set up.