Yes, you are overreacting. Perfect is the enemy of good. Encryption is not so easy when you have a room with potentially hundreds of users, each with many devices, and you have to safely share keys between all of them. I'm using it, and even in a 1 to 1 chat it can be a burden. They are working on it, and it will be default once it's out of beta. But there are reasons why you may not want to use it. And that's a personal choice that people should be allowed to make. Would you also disallow public rooms? Or bridges into non-encrypted services?

I care about encryption, you care about encryption, and they care about encryption. "Giving up on them" and saying their attitude is "problematic and incurable" is hurting, not helping.