Please recommend a cheap email hosting with a good web interface
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Distribution: Ubuntu, Slackware, Gentoo, Fedora, Red Hat, Puppy Linux
I don't understand why you bothered to post this question here. Any email hosting service has the ability to harvest your emails. What you want is to purchase your own server and host your own email server. That is the only way to ensure that you will not have your hosting service harvest your emails.
Google Apps does allow you to use your own domain name in your email. You can have firstname.lastname@example.org with Google Apps.
I have the same problems with google. I don't trust them. I have bought a domain name, and I have a static IP. I plan to set up my own web/email server. I had done this once before and I got h4x0r3d. If you decide to go the email server rout make sure you read up on sendmail and security.