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Tested: Windows 11 Pro's On-By-Default Encryption Slows SSDs Up to 45%
(www.tomshardware.com)
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this post was submitted on 22 Oct 2023
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I'd argue it's similar to the debate over whether HTTPS is needed for most sites (it is and there's little excuse not to at this point). It also matches what is expected from other devices like phones that are encrypted by default now.
As for data loss: for Home users at least, a recovery key is backed up to the user's Microsoft account.