That's usually where people bring up plausible deniability, off-topic and was discussed to death elsewhere anyway.
What about not providing a PIN? How is that different from password? Proper PIN protected smartcards will lock you out after several wrong attempts and would require a PUK. And you might not remember that, genuinely. What then?
It's all seems pretty arbitrary to me as to whether something is considered destruction of evidence and it's very US-centric anyway. So I'd say yes, deniable encryption is needed. If they decide you're not playing ball, then you'll be punished. The difference is whether they will use a legal system for that in a First World country or something else if you're not so lucky.