Why not a combination of these methods? Forget the thermite though.
For example:
Store sensitive data on highly encrypted external harddrives only. These should have a keyfile with a long-ass keyphrase to decrypt them, which should be stored on a encrypted USB pendrive, like Iron Key, with a easy-to-remember keyphrase. Probably good thing to have a backup or two in some secure places outside of your home. Also it's easy to encrypt USB pendrives with TrueCrypt, however these require TrueCrypt for decryption so they're not standalone.
Optionally you could also have some light encryption on the HDD your OS is running on. Obviously disable indexing.
Then buy yourself one or two of
these magnets, they have a holding strength of approx. 220 lbs (100kg) as illustrated by the dude hanging from the ceiling. Preferably keep the magnets close, but at a safe distance from anything computer related. Probably a good idea to clearly mark where they are (it should be obvious to you at least) so you don't put anything with digital content on or near them by mistake.
And the most important step: get yourself a decent lawyer.
So if and when the popo's come knocking, you destroy the USB pendrive (smash it with a hammer, burn it or something), quickly put the external harddrives on the magnets and then exercise your
fifth amendment rights (if you're in the US that is), meaning you STFU untill you have your lawyer present.
Anything that you say, CAN and WILL be used against you in a court of law. This is important to understand, because NOT A SINGLE THING YOU SAY to the cops will help you if you're being accused of a crime. They WILL use it against you in some way, shape or form. One more reminder: DON'T TALK TO THE COPS.
Basicly this way, they may recover some data, but anything sensitive is heavily encrypted, damaged and you've lost the keyphrase to decrypt it so you have at least partial plausible deniability, and most importantly you didn't incriminate yourself by opening your st00pid mouth to the cops.
And how much will this cost you? Minimum cost around $60-70 (magnet $50 x 1, USB pendrives $10 x 2) and a day or two of setting up, because you should probably wipe your HD's before implementing this.
Also another idea that could be combined with this would be to have some decoy HD's FULL of legal junk. Conceilment through misinformation.
Another issue altogether is cleaning up your online footprint. These days companies, even Google, will give up private information to the gov't if pressured even the slightest.