Stewart is extremely smart, should not be underestimated, and HN comments in this thread calling him "incompetent" reflect badly on the person making the comment. He's likely the single most capable adversary the HN/EFF/ACLU/Cato/Mozilla/etc. axis faces over encryption (if he ends up playing that role).
Stewart is correct that end-to-end crypto will "restrict [companies'] ability to sell" products internationally. And he is narrowly correct that "the market for absolute encryption is more limited than you might think" in a corporate environment. https://www.youtube.com/watch?v=ak4ZwLU3aX0 [8:45]
But these are merely clever rhetorical devices. Of course Apple/Google/FB/etc. know that HTTPS will vex snoophappy governments; at this point I suspect their CEOs may view that as a welcome side effect and in any case know their business better than a DC attorney does. And of course banks and brokerage firms don't want end-to-end encryption for their employees; they have likely have FINRA and other legal obligations to preserve correspondence.
Okay, Russia and China are snoophappy and banks may want access to employees' email. Now can we go back to talking about the NSA's bulk surveillance of law-abiding Americans?
Stewart's comments at 12:56 about Silicon Valley companies "picking fights" with the NSA are also misleading. In reality, the NSA was "picking fights" by bulk-tapping Google's interdata center links, subverting encryption standards, and (in the 1990s) defending export controls that weakened American companies' ability to compete. I posted more about this here: https://twitter.com/declanm/status/529804398457651201 https://twitter.com/declanm/status/529798596221095937
Today these companies -- and hopefully the startup founders here on HN -- are merely protecting their users by adopting encryption. At http://recent.io/, which I founded after leaving CNET/CBS earlier this year, our forthcoming Android and iOS apps use only HTTPS to connect to the backend. Naturally.
TLDR: You underestimate Stewart Baker at your peril.