I've just tried to reproduce this with a daily-live CD and I saw the
expected outcome; the installer forced the selection of the encrypted
home option.  Can you please try again with tomorrow's daily-live CD
(http://cdimage.ubuntu.com/daily-live/current), making sure that
`ubiquity --version` is newer than 2.6.6?

Thanks!

** Changed in: ubiquity (Ubuntu)
       Status: New => Incomplete

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https://bugs.launchpad.net/bugs/750028

Title:
  'Encrypt My Home Folder' is still an option when upgrading/not
  reformatting

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