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Yeah those options only take effect as you create new content and isn't applied to content you are already watching. That would be particularly frustrating especially if you had things you had manually and explicitly opted to watch with email notifications.

As well as the "watched threads" list mentioned by Jeremy, there is also link(s) at the footer of every single email which allow you to instantly unsubscribe from either all emails or that type of email.

There's nothing for us to change here so I'll close this suggestion.