I'm not being snarky but what gave you the impression it sat there encrypted?
(caveat: I'm not a security expert) Encryption is used for data 'in flight' as well as 'at rest'. As far as I know, very few companies/services go out of their way to encrypt your stuff at rest (it's within their systems/firewall/etc at that point). Even if they did, they hold the encryption keys so can 'see' it anyway.
If you want a situation where a company cannot see your data, you have to hold the encryption keys yourself (nb: knowing the password != holding the encryption key. My rule of thumb for this is if I can do a password reset on a service, then that service can see everything I put into it.)
(caveat: I'm not a security expert) Encryption is used for data 'in flight' as well as 'at rest'. As far as I know, very few companies/services go out of their way to encrypt your stuff at rest (it's within their systems/firewall/etc at that point). Even if they did, they hold the encryption keys so can 'see' it anyway.
If you want a situation where a company cannot see your data, you have to hold the encryption keys yourself (nb: knowing the password != holding the encryption key. My rule of thumb for this is if I can do a password reset on a service, then that service can see everything I put into it.)