Also, file encryption / decryption fails massively for some things. What I want is something that implements a filesystem. As otherwise things with many files get... annoying. Not to mention less secure.
If there's a better way to do this then let me know.
You can also use GnuPG or openssl to encrypt a file or a disk image.
Lately I took a look at actual filesystems for cross-platform use. I didn't find a great one, but depending on which OS you want to burden with an extra driver, pretty good ones include exFAT, NTFS, and UDF specifically version 2.01. Like you, I am curious whether better answers are available.
It works well as a TrueCrypt replacement for me personally, but has a couple of warts. Secure rm is slow on cleanup, and the user needs to be careful about the hidden files it uses to keep track of volume metadata.
That's not Windows-compatible, as far as I know.
Still interesting though.