1. Anyone can use it. Everyone SHOULD use it, but people get lazy.
2. You can encrypt just about anything, text (emails, messages you send over IM protocols, etc.), you can also encrypt ANY file. So if you were sending something that you only wanted the other person to see, without your ISP snooping in, or your email provider reading/looking, then you could encrypt it for the other person.
The file backup service "Spideroak" encrypts all the data on YOUR end, before it gets sent to them, so even if they wanted to break privacy, they couldn't.
3. You get software like GPG (gnu privacy guard) or windows users call it PGP (pretty good privacy)
Just 'Signing' the name? like what? Actually scanning your written signature? I guess that's ok sometimes, but if you sent your signature through the internet, then there's no guarantee that someone couldn't just copy it and fake being you. With gpg you can digitally sign and encrypt data so that it's 100% only someone with your private key and password made the file/signature. This can even be legally binding, since it's so secure.