I can confirm that this still happens on Ubuntu 17.10.1. I've uploaded a
recent screenshot. The red arrow (added by me) on this picture points to
the disabled controls.

After the installation, there's indeed a new directory /home/.ecryptfs
(which has not been created before by the Private *folder* encryption -
which is not to be mistaken by the *home* encryption).

** Attachment added: "cropped screenshot, red arrow added afterwards"
   
https://bugs.launchpad.net/ubuntu/+source/ubiquity/+bug/1325648/+attachment/5103745/+files/screenshot_cropped.png

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https://bugs.launchpad.net/bugs/1325648

Title:
  Installer options (auto-login and encryption) greyed out

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