Your experience is disturbing. I don't know if Hotmail is done through Exchange servers but it certainly seems too coincidental in this case.
In any case, I'd prefer more people use encrypted mail services, some of which are free for limited uses or fairly cheap. But of course, the encryption only works (at least, easily) if both users are using encryption. There is a way for most encrypted email services to send an encrypted email but it requires the receiver to click o a URL that takes them to a website where they enter a password you've already given them.
It's not as pretty as Protonmail, but Tutanota gives you fewer limitations on their free account. You get 1 GB of storage and no per-day limit. Protonmal has 500 MB storage and 150 messages per day limit which might be fine depending on what you need it for. Tutanota's paid accounts are much cheaper. So the interface is alright, Tutanota is better. I have a paid account which is 1 euro a month (paid annually).