Re: Thinking of separating my holdings into two physical locations.
Each to their own, however USB's are much more fragile, and don't tend to live as long as pieces of paper stored correctly.
well if someone is just storing their seed phrase on a single digital device then they have no idea what they're doing. 
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Yeah, LUKS can be used. Although, you still have to trust the hardware that you're setting LUKS up on. I personally wouldn't recommend untrusted one's. However, these days it's hard to even trust well known brands.
to be honest, i'd be more worried about having some type of encrypted file system corruption. on the list of failure points that one is probably high up on the list in terms of probabilities of occurrence. compared to other things...