That's a blatant strawman as that isn't what is being discussed here at all.
In BOTH cases (with device encryption or without) the data is held on your device and only on your device. If you choose to upload it to OneDrive/iCloud/Google Drive/etc then that is your business but outside the scope of this "issue."
> Maybe that makes me an outlier, but if I had owned one of these devices, I'd be pretty outraged...not unlike some were in the midst of the recent iCloud brouhaha.
This issue is nothing like that issue. The fact you seem to think it is means you don't really understand this issue or that issue or both.
This issue is that device encryption encrypts your drive, it then backs up your key by default to OneDrive. The data itself is still held on the device encrypted (unless you saved it to OneDrive or copied it into that virtual filesystem).
The iCloud "issue" was that iCloud allowed infinite password guesses against an account without warning the owner or imposing a limit on the number of wrong attempts. iCloud is opt-in (during iOS setup), so people opted to have files stored there.
http://en.wikipedia.org/wiki/Steganography
>>For example, a sender might start with an innocuous image file and adjust the color of every 100th pixel to correspond to a letter in the alphabet, a change so subtle that someone not specifically looking for it is unlikely to notice it.
I cannot comprehend that the NSA is scanning every image on the internet looking for patterns like that. If I were planning on some anti-establishment action, that's what I'd do. It would also be pretty cool for someone to make a tool that does this automatically. For regular people who just want plain privacy, keep on whistleblowing, keep on naming and shaming, keep on making the NSA's strategies not work by posting more and more tools & techniques to render their surveillance useless.... until we reach some kind of critical point that even the average-joe can't ignore.
and sure, phones have a huge attack surface in general, but changing defaults in this way makes certain attack scenarios easier, even if it also happens to be convenient for other users.
i think we agree that encrypting data at rest isn't sufficient for keeping private data private, but it may be necessary and is probably beneficial.
for some users, keeping keys in microsoft's cloud may be a good option, but i think that hinges on whether they know and understand the implications of sending their recovery keys to microsoft.
for example, maybe you lose your phone and some pickpocket doesn't grab your data very easily, but maybe the local police force gets your recovery key from microsoft and finds nude photos of your significant other before returning your phone to you. i'd be pretty displeased in that case, even if it helped me get my device back.
i suspect many people storing recovery keys with microsoft don't know that this is happening, and might have made different choices if they knew that and understood some of the implications.
This argument gets to the heart of mass surveillance vs. targeted/individualized surveillance. I personally prefer a world where someone would have to do something like steal my device to gain access to my data to a world where everyone's data is compromised by default all of the time. Maybe that makes me an outlier, but if I had owned one of these devices, I'd be pretty outraged...not unlike some were in the midst of the recent iCloud brouhaha.