@scottjenson I don't see much wiggle-room for improvement if it is not clear how it works under the hood.
Ideally encryption feels almost imperceptible, and needs a mere indication on the side, but I guess the UX work won't be to GET THERE – but is to make the emerging pain points more bearable. 
I think the UX you would want to improve is connected more with the FEP itself than any UI concerns. Depending on what they come up with you'll be free to do what you want – or deal with strange constraints. (Key handling seems to be the arch enemy of UX in encryption if you ask me :P)

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. You know you would be among the biggest recipients of thanks If that got boosted. I feel tricked.