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What sort of Oracle encryption are you referring to? TDE (transparent database encryption?)
We're still on CF 7, and we're using the JDBC-OCI drivers (not thin!). We only have Oracle 10g Standard Edition (not Enterprise), so we don't have Oracle TDE available to us. We ended up writing our own package library in Oracle and leveraged the DBMS_CRYPTO package to handle our encryption needs.
The JDBC-OCI drivers were necessary for us to take advantage of Oracle RAC (with TAF), as well as stored procedures as you mentioned. We have run into one issue however, and that is, the JDBC-OCI drivers appear to hang endlessly if you try to return a LOB object to ColdFusion from a stored proc. LOB fetches need to take place in <cfquery> tags it would seem. Other than that the JDBC-OCI drivers have worked out great for us. The only downside is that you really need to have a full Oracle client installed on your ColdFusion server (we're using an Oracle 10g Run-time client install). Not a big deal, but it's yet another thing that you have to install, and worry about patching, etc.
It is my understanding that if you are using the JDBC-OCI drivers, you would be able to take advantage of Oracle TDE. I've never had the opportunity to try this myself however.
I hope this helps...feel free to reply with more information if you still have questions.
Thanks for the info. Does anyone have any other info for CF 8 with TDE?