That's a valid point. I feel for you. Similar thing has happened to a friend because of his dorm roommate torrenting some ... not linux isos illegal stuff.
With that said, I still find this risk quite unlikely to happen (at least in my country) with data loss due to being unable to decrypt the drive being more likely due to me changing computers often. If I were in a country such as the current U.S. for instance, I would most probably encrypt everything I could get my hands on. In addition, I think it is one more reason to have good offsite backups and to invest time into those. For me, losing the data/not having access to it for a long time while the police have it is a bigger impact than them finding out what porn I watch in my opinion. I don't mean it in a "nothing to hide" kind of way, but in a "I don't think they could do much any/damage with that information" way.
With that said, I still find this risk quite unlikely to happen (at least in my country) with data loss due to being unable to decrypt the drive being more likely due to me changing computers often. If I were in a country such as the current U.S. for instance, I would most probably encrypt everything I could get my hands on. In addition, I think it is one more reason to have good offsite backups and to invest time into those. For me, losing the data/not having access to it for a long time while the police have it is a bigger impact than them finding out what porn I watch in my opinion. I don't mean it in a "nothing to hide" kind of way, but in a "I don't think they could do much any/damage with that information" way.