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Probably even more crucial, setting compression=on is very likely to make ZFS performance even better than ext4, even on a single disk.

This and encryption seem mutually exclusive (for me with OpenZFS @ Ubuntu 21.04).

They occur at different layers:

OpenZFS native encryption splits the difference: it operates atop the normal ZFS storage layers and therefore doesn't nerf ZFS' own integrity guarantees. But it also doesn't interfere with ZFS compression—data is compressed prior to being saved to an encrypted dataset or zvol.

* https://arstechnica.com/gadgets/2021/06/a-quick-start-guide-...

No, they are not. Compression happens on the plaintext data, and encryption applies post-compression.

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