Comment 10 for bug 257901

And shaggy, I think this feature is still useful for users with encrypted ~/. That is because I assume in general you have to have your Home decrypted pretty much always when logged in for things to work properly. However with ~/Private, this is not typically going to be the case. As such it will allow you to have encrypted data while logged in, with on-demand decryption, if you desire. With an encrypted Home even your most private data is still vulnerable if you are logged in, but keeping your private files in ~/Private and unmounting when you don't need it would keep those safe. Sure, when logged off, ~/Private is "double encrypted" but this shouldn't really matter and is transparent to the logged in user.

The only downside I would see here is if you plug your drive into another computer to access it, you have to decrypt your Home using whatever utility you require, and then use ecryptfs to get at your ~/Private. However for some this added level of security for ~/Private may be seen again as a feature.

Although, this probably belongs on the wiki and not this bug report for a GUI :)