Right, but you could also get accused of a crime at any time. If police take your equipment, then good luck getting it back. It doesn't matter if you're proven innocent, or if proven guilty, and have served your time. If the police take it, it will gather dust in evidence storage somewhere for years (or mysteriously disappear to show up in possession of friends/family of a LEO).
Yes, data failures can happen anytime. Also, I'm extremely lazy. I much prefer using Truecrypt and Tarsnap with automated scripts.