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This feature was created to support the mail journalling feature of Domino. That feature has two journalling methods, one of which is to send data to a mail-in database. For security reasons, that data had to be encrypted, thus the feature.
So you are correct, if you use one person's public key, that will allow only them to read the data. But as is recommended for mail journalling, if you create a special ID for an application and use that ID's public key then any user that has access to that ID can access the data.
Once again, to use mail journalling as an example, since the contents of e-mail is so important, having one user access to the data could be risky. So you create an ID that requires multiple passwords to access and use the public key of that ID. One of those passwords could be for the Domain admins, another for HR, another for management, etc. That way more than one person is needed to access the data providing tight security.
Feedback response number WEBB8NFBTQ created by ~Sarah Umjumiader on 11/09/2011