I guess so, but that's the same situation as it is with any other email provider (yahoo, gmail, etc). The difference here is that you are only trusting Pluto. With other providers, you are trusting the provider and all recipients, whether they are an intended recipient or not.
In short, there is no free lunch, but this seems like a decent solution as you only have to trust one entity. Its up to us (potential users) to decide to trust them or not.