Doesn't seem rational behavior to me. You make it sound as if you check for every file uploaded to the Bitcoin network, and take ethical responsibility for each. And this responsibility goes away if the file is encrypted... just because you can't see it? Someone else can, though. And it might be proved later on that it's illegal / unethical. What do you feel in that case? Why does encryption removes this concern? How do you know which person owns the decryption key? Maybe the key is publicly accessible as well, which would nullify the whole "encrypting data on-chain" concept.