Yes, and the encryption on those really isn't that important as it can be protected by full-disk encryption (ex FileVault) on your hard disk, or throwing the ba

Yes, and the encryption on those really isn't that important as it can be protected by full-disk encryption (ex FileVault) on your hard disk, or throwing the backup in an encrypted container (zip, dmg, whatever) manually. The local iTunes encryption does have to be enabled for call data, health data, WiFi passwords, and browsing history to be included. Frustratingly, if you forget the backup password you have to Reset All Settings on the device, no way to change it going forward if you lost the old one. Of course, there should be no way to get to the old backups if you don't have the password, but if you have access to the device (thus, the source of the data to begin with) you should be able to change it without a reset.