> Why haven't those vendors been already co-opted by governments (Kaspersky on the Russian side, Microsoft in the USA side) into scanning for illegal, copyrighted or secret material and reporting on it

My reply about the only-recent prevalence of E2EE and HTTPS was an implication that the governments mentioned didn't need to get those companies (such as anti-virus companies, etc) to scan for [insert scary material here] as they would have just been able to hoover it up on the wire (as was shown happens in the US by Snowden)

Thus the question of "Why haven't those vendors been already co-opted by governments" is answered IMO - it wasn't necessary.

Edit: to be fair - i now see what you mean - "never leaving the device and still getting scanned" vs "scanned in transit"