In the 3 years since the original post, Zimbra has added kerberos. Configuration is complex, but big kerberos shops are used to that.
The md5 challenge/response mechanisms require the server to store a cleartext or cleartext-equivalent password, which is generally considered undesirable. Recent null-byte and rekeying news notwithstanding, SSL3/TLS is better... and best is kerberos, client certs, or one-time passwords over TLS.
As for PGP, I'd say that Zimbra is 100% in sync with PGP's security model, which is that user keyrings should never be stored on servers (neither pubring nor secring). Keys should live on your single-user workstation. You can use an IMAP client, or possibly a browser plugin like FireGPG. |