As far as private businesses, they should use cell phones and Nextel to transmit any sensitive information. Much cheaper than encryption.
When it comes to public safety, I have a couple feelings on encrytion. One, I feel regular police dispatch should not be encyrpted. The public has a right to know where the cops are going and what's going on in town. If the cops feel they need to be encrypted, than an encryted dispatch channel should be provided (or you could use a P25 conventional channel with encryption capabilities). This way the public stays informed but the most sensitive stuff can be kept secure. Anything involving strike forces, SWAT, organized crime details, plain clothes, detectives, etc - all the sensitive stuff - should be encrypted. I have a bone to pick with the city of Philadelphia on this one - they insist on encrypting fire ground channels for BS reasons yet all the sensitive police stuff is digital but in the clear (such as drug survelliance). I also feel some towns use encryption as a cover up. I feel Brick Township, NJ has all the police stuff encrypted as part of a cover up so they can continue to get recognized as the best place to live in NJ. My girlfriend knows somebody who lives in Brick and she told me they covered a lot of stuff up in order to get that recognition. Thus I feel the encryption is employed so nobody knows what's going on in terms of crime.
In conclusion, encryption is a good tool but it needs to be used wisely. Routine law dispatch should be in the clear but anything sensitive should be encrypted. That's my feeling.