mdm-adph: you are exactly right, this is basically never a problem. 
I'm do happen to encrypt my whole disk so my laptop is worthless to simple 
thieves motivated by data, but I would be very unlikely to be in a situation 
where my key is being forcibly demanded of me. And were that situation to come 
to pass, I wouldn't be performing a brave resistance, I like most others, would 
probably reveal the hidden partition long before I thought I was drowning. Even 
that is irrelevant because...

This scheme is supposed to work by making you lost in a crowd, but the
point is that if you are the one they want the encrypted data from, the
fact that your neighbour has a 1GB of noise on their disk is irrelevant.
You are  being asked to prove you don't have the password (as was
pointed out on the odd Slashdot thread about this, burden of proof lies
with the UK citizen, not the UK government).

I think it's also worth noting that Ubuntu already, legitimately, has a
range of crypto algorithms and tools installed by default (from kernel
modules, to SSL, to gpg, to LUKS and its gnome integration). The
installer has a one click option to encrypt your entire disk.

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General "rubberhose" vulnerability
https://bugs.launchpad.net/bugs/148440
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