I read your question as comparing the originally-proposed pepper approach vs the encryption approach, and I said the question was irrelevant because both approaches have the identical risk that the app server is compromised, but only the originally-proposed pepper approach has the risk that it's not actually secure (e.g. because naïvely composing hash operations may be bad, and adding static bits to passwords may also be bad).
But upon reflection I believe you were instead using the term "pepper" to include the encryption approach as well and merely trying to question whether the added security of requiring an app server compromise is worth the risk that you still screw it up somehow. And to that I'd say that it's not difficult to apply an existing block cipher algorithm when storing/retrieving password hashes so I think the risk there is low.
> Why is everyone panicking that it's hard to do?
Everybody's panicking because the originally proposed pepper implementation is a really bad idea. That approach has not been researched for security implications, and there are many reasons to believe that composing hash operations without using a specially-defined operation like HMAC is bad, and adding static bits to the salt or password (e.g. if you use 'pepper.salt' for the scrypt salt or 'pepper.password' for the password) is also bad.
However, I believe the approach of using a block cipher to encrypt your hashes with an app-wide password is reasonable. It's not composing operations badly (encrypting a 256-bit string, or whatever scrypt emits, is perfectly reasonable given a secure key) or otherwise providing an attack vector on the hash algorithm.
The biggest risk I can see with this approach is you have to make sure the pepper is stored securely on your app server, never visible to the database server (and never accidentally committed to an open-source repo, if you're using an open-source server). Not just that, but you have to make sure that you don't accidentally lose it either (or you'll have instantly lost all your accounts). But this is a solvable problem.