After some extensive work on the Notify module of TuscanyCircle, and after its long absence, I've re-enabled email notifications for trusted users. If you go into your account (click "account" on the top-center menu), you should see a tab for "my notify settings" or something like that. You can choose to enable or disable notifications as well as include new posts and/or new comments.

As email doesn't scale well, I'm not opening this up to all registered users (let alone anonymous ones) but am restricting it to trusted users. (If I set things up correctly, only trusted users should see this post, too.) This should keep the number of emailed users to a reasonable limit.

Unfortunately, you don't have nearly the flexibility you do with RSS. You cannot choose per-post or per-category notification, for example. It's all or nothing. You can choose posts and/or comments, though (no "shoutbox"). The emails will only contain the title and a link to the content.

Let me know if you have questions.