Those who used it imagined Swiss law to be less intrusive? I suppose it sounds like a good idea to anyone, which is mostly everyone, who doesn't know Swiss law.
Yeah, they rolled over to the authority, as expected. But, they sold themselves as "private", not "private up to the extent of Swiss law, and our laws here are very intrusive, so really the private part isn't going to get anyone very far if they use this service for anything slightly questionable, let alone outright illegal. You might as well be using GMail for how 'private' this thing is."