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Lemmy today
(i.imgflip.com)
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Apparently they also strip encryption off and see everything, too.
They see everything because they have to for some of the services they offer which gives them a huge potential to do terrible things that they have not actually pursued yet to date, hence the "so far" in my comment.
No terrible visible things, at least. God knows how much data they've hoovered up.
True. But that just falls back on the "not yet" part of things. They're likely sitting on a massively valuable pile of user data and when they get greedy enough it's going to be ugly.