Many people have commented on encryption, but I have never heard of practical encryption that cannot be broken with a brute force attack given the time to do so. Even the people behind openssh say that a remote computer could see all of the data transmitted merely that by the time the data was decrypted it would be useless (Which seems a bit of an assumption to me...).
Also, there are ways to get away from the risk of grub giving away a root password at boot. First off not every kernel has a single user mode compiled in, you could always compile one without one. Second, grub isn't the only bootloader in existence. I cannot recall Lilo giving me the opportunity to set things at boot (though I may just be missing the option) and I don't recall System Commander 2000 doing it either (Though I haven't used it in some time).
The point is, data on a computer is by it's intrinsic nature very insecure, however the security that Linux even in it's least secure state is leaps and bounds above what the average user needs. If one really wants to keep data secure there are only two options that I can really think of, and that is a one-time pad, which is rarely practical or to use security thorough obscurity.
One-time pads are still somewhat vulnerable if one accurately guesses what part of the message must say (Which isn't as hard as it sounds) and the only security through obscurity I would trust is something unique. I have yet to meet someone who can crack a unique conlang that is a priori. It is doubtful any computer could brute force attack something like that either due to the ambiguous nature of language. Obviously a conlang would only be useful in the context of computer security only if the entire os was written using that langauge (From scratch, someone could figure out know linux/unix/dos,etc commands via a brute force attack) or if the documents that needed to be secured were actual paper documents (which is what I do).
My point is, security is more or less an illusion created to sell computers. The only 100% secure data is data that is never stored on any medium.