The challenge with the new approach is that key sharing requires the insertion of a 3rd party. That is, your site sends an E-mail to the user. The problem is when your E-mail is blocked or spam-trapped by others. It can also be considered as a security risk by the recipient if they do not know who is AxCrypt.
So although your philosophy around encryption might be based on years of experience, you also need to understand what users want. I for one am not looking for government-level TS encryption but for an easy way to securely exchange some files with others. Nothing “Top Secret” or what I want to hide from governments.
I liked 1.7 because of that and have since struggled with 2.x (see my other post – updated and lost “Premium” even if I am registered till 2/2018).
To be honest, I have started to use WinZip 21.5 with the AES-256 encryption to share files. OK, it might not be “Type-1” level encryption but it suits my needs. I wonder how many others miss the simplicity of 1.7 and are ready to use a “less secure” product for menial tasks?
I do like AxCrypt but I believe that the path you are following although more secure, might not necessarily be what your user base wants. But then again, all I can only refer to the posts I read over here. Maybe I am part of the minority?