Equivalent software encryption has existed for a while (it's built into Vista for example). But when you read about these Government or Financial laptops getting stolen with people's private information on them they're never encrypted. Why?
Because any info that's valuable is too valuable to risk losing just because someone lost the password. I mean, he says it himself...
"it can't be brought back up and read without first giving a cryptographically-strong password. If you don't have that, it's a brick. You can't even sell it on eBay."
So when you deploy this kind of thing you have to ask yourself if there's any circumstance under which that password could get lost. I'm not against the technology I just don't know a lot of people who will be brave enough to use it.