I think PM encryption is one of the things that jellsoft may have thought about and decided it is pointless. If someone has access to your database they could do far worse than read private messages. Unless obviously it is the Administrator, But he/she could easily read the 'encrypted' message if they so desired.
If a user recieves a private/personal message they could always download it and delete the message. (Is the row in the database removed when the recipient and sender delete the message?).
Privacy depends on what your forum is about. For example if your userbase was largely under 13 years old and there were a few 40-50 year old males on your board then it may be prudent to actually check or screen messages. Obviously that is a stereotypical example and I am not saying that all 40-50 males are seedy... Rather it would be odd if they were on a board dominated by younger people.
Anyway it is a good idea though not really that useful...
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