The UI for setting the e-mails is difficult to read and understand. The wording of the settings is too vague and both the "watches" and "all content" are in a single list making it confusing. See the attached screenshot from Confluence 3.5.7.

It would be good to have separate sections for subscriptions and notification settings. Maybe something like this:

Subscriptions

• Receive a daily digest of all changes
• Receive notifications for changes made by people in your network
• Receive notifications for all new blog posts

Automatic watching

• Automatically watch content you edit or comment on

Notifications

Notification type: HTML | Text

• Include the changed content in the e-mail (HTML only)
• Include the entire content in the e-mail (HTML only)