That's always an option, and my usual go-to when disposing of drives at least. It gets a bit scary to do so with the main prod data though, lose a key and everything is toast. If you have a solid means to keep crypto keys secure and redundant though by all means. It can put a hit on CPU and disk performance depending on how many random read/writes it has to do. I wouldn't think it's a great plan with a lot of fedi services just because of that factor. My mastodon instance has something like 116GB of attachment data in almost half a million objects, that's a lot of encrypt/decrypt action to maintain.
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