Wouldnt it be better to tell the police that the encrypted data in the last step was actually the key and the new x-ored file was the data. That way they would extract a picture of a cat!.

Regularly email your encrypted password list to friends who would know how to decode it given the password. Then split up the password using Shamir's Secret Sharing Scheme (http://point-at-infinity.org/ssss/) into 10 shares requiring 5 to decode. Send these shares to 10 people you trust. 5 of them need to get together to determine your password.