Yup. Except it's not that easy.
Let's say that you're using OTR to provide very strong end-to-end encryption for a conversation between yourself and a buddy, Bob. Maybe he's in a hostile area, and you're worried that if his government sniffs his traffic, that he could be executed for speaking to Americans.
Data in transit that is intercepted, if configured correctly, is almost certainly safe. No one will be able to immediately decrypt it because of the strong encryption.
So are you safe?
Probably not. The next step that government would take would be to raid your friend Bob's apartment, arrest him, and take his hard disk. His OTR key (and, if using Pidgin, account credentials in plaintext if stored) is plainly available on the disk. You now have the private key.
But what if he used Truecrypt or PGP full-disk encryption? His data would be safe from decryption then, right?
Sort of. If they're trying to break the actual encryption, they'd likely be unable to do so. Unfortunately, the weak point for Truecrypt disks or volumes isn't the crypto... it's the passphrase. The passphrase can be brute-forced significantly more easily than breaking the encryption itself. Furthermore, as xkcd so accurately pointed out, a hostile government will throw you in prison (or, worse, hit you repeatedly with a wrench) until you divulge your passphrase and data.
Encryption is great, and I encourage everyone to use reliably strong crypto. Will that keep your data safe from the criminals that stole your work laptop? Absolutely. Will it keep your data safe from the NSA? You're kidding yourself.