Grossman's approach of encrypting a removable file system full of secrets and to some extent all the approaches reminded me of this line from a Doug McIlroy paper I read the other day:
Quote:
Even if crypt were perfectly safe, it would be unwise to encrypt files of lasting value. It is too easy to lose the key either inadvertently or deliberately. Consequently crypt has been demoted to the games chapter (Grampp, v9).
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http://doc.cat-v.org/unix/unix-reader/reader.pdf
I wonder what approach he would suggest. Or perhaps you could argue that passwords aren't of lasting value since there's usually some process for resetting one should you lose it.