[naner]

What if the chip fails?

What if you forget your password? You should have backups (and not just a backup password).

On Linux, use dm-crypt/LUKS. Why oh why is this still not easy to set up?

It is very easy IMO (the only differing steps are creating a crypted container and opening it). I think you mean to ask why it is not an available option in most distros' graphical installers.