If you happen to be a small or medium scale company that cannot afford multiple data stores and infinite numbers of mirrored hard drives, that becomes a problem. An encrypted hard disk in a laptop that gets banged up damaging the hard disk may still have some of the information intact enough for recovery but damage some of the vital keys and software and you are left hanging by a thread or down in the gutters. Data recovery is possible but only through expensive methods with the hard disks being opened up, the platters extracted and installed into another similar hard disk for data extraction. Only the military and federal government would have enough cash to burn in terms of data recovery at that level for the price is computed in the amount of megabytes recovered and on a per hard disk basis, and imagine a 1 terabyte drive at say $50/MB then you’d be scratching your head by now, and that’s just for a single drive.
The risks of identity theft and information leakage is real but the technology is still quite prone to failure even with today’s quad-core which is why we didn’t discuss the performance issue in the discussion. Today’s multi-core processors are capable of handling complex tasks such as real time encryption and decryption as if there was nothing happening on the background. The performance issue has been addressed by more powerful microprocessors but the reliability of the hard disks which stores the information and even the CD’s are still quite weak. Till there is more definite proof that all parts of the computer has reached such a reliable level that failure is a less of a factor more people would still retain their own proprietary security measures (birthday passwords, flash thumb drives that always get lost and physically carrying their discs with them).