I think this dd command should erase all data on / or accordingly /home
to prevent any possible unintentional data recovery of stuff that were
on the machine before encrypting first.

the command is not the problem. Security first.
But there is NO visual FEEDBACK of the installation progress, which is 
alienating.

-- 
[karmic alpha6] Installing System with encrypted $HOME: Installer hangs at 83% 
for ~15 minutes
https://bugs.launchpad.net/bugs/432422
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