something I hadn't really considered about hard disk encryption, before reading this, is how it could protect against compromised disk controllers. if the OS encrypts the data stored on the disk, it would be a lot harder (perhaps, with the right composition, impossible) for a malicious disk controller to insert/change/modify important data (like code, or password files) stored on the computer.
we think of the system as a holistic entity, but turned on its head, you can see how the inside of a computer is just a network...