As others have pointed out, this doesn't protect the data from a compromised server, but I think it has a different motivation.
It appears the purpose of this is to reduce the liability of whoever is running the server. Perfect for magnet links and such.
This is another step in the right direction of protecting the web and its maintainers from legislation.
[1] http://www.w3.org/TR/html401/intro/intro.html#fragment-uri