This is wrong and unnecessarily snarky. I don't pre-encrypt all data, just PII/PHI. Doing this, or tokenization with a vaulting servjce, is pretty much standard recommended practice for storing sensitive data.
I do think there’s an argument to be made for the idea that, to put it colloquially, “somewhere the Social Security Administration needs a database that just has every SSN in plaintext”, but that’s not _exactly_ an honest everyday use case.