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That’s what I also fail to grasp.
If things get serious and for example the WhatsApp, Telegram and Signals of the world have to disable e2ee to keep operating in the UK, I guess they could just leave that market before compromising data privacy of their users worldwide.
I don’t see this “ending encryption worldwide” thingy happening, at all.
But they could dig themselves a deeper hole after Brexit, that’s definitely possible and wouldn’t surprise me a bit.
Or ship specific versions of their software for the UK, as it is done with other software in other countries with restrictions.
A lot of them have already said they’d withdraw (facetime, iMessage, signal, WhatsApp included).