It did have a positive influence on me right away. It also established this sense of trust. Enough that I began to crawl through the other pages for more info.
I also appreciated how you managed to convey, in a single image, exactly what was encrypted (ie, both document content and filename).
The first question I had was how Google Docs handled this. Do they also encrypt? If so, do they encrypt both filename and content? Considering Google's business model, I always assumed that they did less in this regard - relying instead on other mechanisms to protect user data.
I would keep the encryption message and double-down... comparing how other services handle privacy, tracking, data-mining, encryption. It's your strongest selling point.