The problem is block-level crypto. It has nothing to do with whether it's layered on top of a hardware disk drive.
What you're not getting is that TrueCrypt offered a particular interface experience and cross-platform compatibility that doesn't exist elsewhere.
Some folks call that "full disk encryption", but since there's a separate feature in TrueCrypt that calls itself "full disk encryption" and is actually encrypting the entire disk, to the point where TrueCrypt has to supply a boot loader to decrypt, it's probably reasonable to want to differentiate the two.
Thomas doesn't see the difference because it's all "block level" encryption, and apparently the only thing in the world that matters is crypto (rather than the presentation and adoption of crypto), but the difference is mainly in the boot loader aspect.
See above citation.
Are you really trying to suggest the world shouldn't have a tool like TrueCrypt out there?
I also have no idea where the "I'm telling the world there shouldn't be a tool like Truecrypt" came from. I think you've misread me.
I'm asking you a question to clarify your stance.
Do you think something like TrueCrypt shouldn't exist?
I get that not everyone understands the technical issues in designing storage encryption, but don't take that out on me.
If you're not using TrueCrypt for full-disk or full-volume encryption, you'd be better off using basically anything else. There are plenty of cross-platform tools for doing that kind of thing.
Authentication is the biggest problem with sector-level crypto, but the other technical problem with encrypting sectors is that you don't get a place to store the metadata you'd need to randomize the encryption, and so you lose semantic security as well. If you squint at it the right way, XTS is the ECB mode of sector-level (wide-block) crypto schemes.