That is one (good) way to handle the encryption.
You don't want to leave out the compression or block size however, so add those back in. Most WAN links are low bandwidth enough that compression will not slow things down (this is usually true even on 1 GBE LAN links for pigz) and in my experience the speed-up is substantial.
pigz is much faster than using ssh compression as it is multicore. apt-get it or http://zlib.net/pigz/