We had this at Lavaboom (German encrypted email, bankrupt) 2 years ago. Our designer came up with this idea, I initially wanted to implement the classic 2 password design. The tricky bits are (1) explaining to the users that they can't reset their password and (2) supporting users who opt for manual key management (e.g. I own name@mydomain.com and I want to move from Google Apps + GPGtools to Lavaboom/Protonmail/etc)…
Considering how emails can stay in service storage for decades , (even longer if archived by spies, etc), their security is now reaching the requirements of data on Hard Drives.