Hmmm. I personally think it's the same. The data gets backed up, stored securely and can be recovered if the original is lost.

The private keys get backed up, stored securely and can be recovered if the original is lost.

The password gets backed up, stored securely and can be recovered if the original is lost.

Yes, agree with that, keeping password and keys in sync with the data is an order of magnitude worse than just simply restoring one internally consistant set of data. But probably much less problematic than say, restoring a corporate global data structure and a few logically linked workgroup databases to a consistant point in time and ensuring all the reporting systems aren't out of kilter.

Personally, I encrypt the private keys, using a different encryption technique, and back them up to separate media at the same time as the data they were used to encrypt.

The password for the data encryption private keys is encrypted again, the password for that layer is written on paper and the private keys for that layer managed a bit differently again, I'm sure you can see the pattern though.

Belts and braces? Yes.

Secure? Yes.

Always recoverable? Yes.

Paranoid? Probably.