Ideological concerns aside, I don't really see that much of a problem in law enforcement hacking personal computers. For one thing, it just might stimulate the crypto and computer security industries. For another, there shouldn't be anything to hide, right? I mean, if they start cracking down on pirated software and whatever, that might be a little bit of an issue...
Everyone has something to hide. You have photos of Big Ben and a degree in electronics? Translates into, "This guy is possibly planning to bomb a clock tower."
One problem with any crypto technique is that you can never know for certain that it hasn't already been broken, you just know about vulnerabilities that have been disclosed.
If you have everything encrypted and follow proper procedures (choose a good passphrase, don't tell anyone, don't enter it on untrusted terminals over plaintext links etc) and suddenly the police are showing up with all kinds of stuff encrypted by people using this algorithm in court they have tipped their hand. My understanding is that any evidence must be legally obtained and they have to explain how they obtained it for it to be admissable.
IANAL
...but not if you don't pirate. ;)