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. . .

I'm not sure you understand the problem. Say I store this sort of stuff on my home server. A ramdom person reports me for having $illegalStuff. The police get a search warrant, and come and take my server away.

They then turn around and take a drive image, point to the fact part of the drive that's encrypted and demand that I give them the encryption keys for the data, or do 2-5 years in prison. I explain the data is not mine and I can't give them the encryption keys.

Your then arguing with a bunch of policemen who are more adept at using handcuffs than the finer points of encryption schemes and a judge who has a hundred other cases to do that day and is probably no more technically savvy. Their response is likely to be "encryption key or prison".

Now how much do you trust Tardigrade to provide the encryption key? 2-5 years in prison enough?

I personally wouldn't.