[Jeremysr]

Well, you could distribute your encrypted wallet as widely as you want, without worrying about theft or loss (if you have a good passphrase and spread the wallet to enough locations), before you start receiving bitcoins to it.

The point of using the Pi is that you can make sure the decrypted wallet data only ever exists for a short time in RAM on hardware that is very likely non-malicious and that never has and never will connect to the Internet. If I had a significant amount of bitcoins sitting in an address that was generated by my laptop that I've been using regularly for the last four years, then I wouldn't sleep at night.

[tlrobinson]

Note that if you're generating wallets/private keys on the "Key Lime Pi" you also need to trust the random number generators aren't backdoored.