I would have to agree with your "Sensitive data should not be stored on a computer that can be carried away or easily accessed, with or without encryption." statement!

Physical security *ALWAYS* trumps logical security.

Lets not forget the limitations on encryption. If it can be decrypted, all it takes is time. Regardless who has the keys. Hell, sometimes event if it wasn't ment to be decrypted, it can be with sufficient resources (ie; Rainbow Tables).