agreed, it's definately not a new thing. I work for a large ISP and email logs have been kept for a long time and given to to the police, etc when requested.
So if I am using an email hosting service who is based in New York (Tuffmail if you've ever heard of it), and has servers in America, and I send email always through their own secureSMTP servers not my ISP email servers, surely my ISP cannot trace any emails I send.