Is is too complicated to implement a boot password and/or implement this script in an encrypted install?

[robertocarloar]

Since unsquashing modules can be done on the fly using AUFS or manually with overlay, all relevant information regarding the later added user data is therefore open. Thank you.

[Tomas-M]

I am afraid that I do not understand the question. Are you interested in password-protected storage for persistent changes? Or do you want to password-protect even the data inside squashfs modules?

[robertocarloar]

I meant both: Using the script to create a live environment on an encrypted partition and/or encrypt modules. Thank you

[Tomas-M]

To me it is too much complicated. The same result can be achieved by hardware device such as Kingston DataTraveler DT2000