I don't see the point of decrypting it first either.
Encrypted data is, for all intends and purposes, just random noise.
(If it isn't you're not doing it right...)
Provided the re-image is done with a full-disk image, which includes the bootloader/bootsector and sets the end of the last partition properly to the end of the disk if the disk happens to be larger than the image itself there is really no difference between doing a re-image with or without decrypting first.
In fact: If you decrypt first and then re-image with an image that DOESN'T cover the entire disk you will actually expose old data !
So decrypting is a security risk in that case.
Whoever came up with that policy to decrypt first must be shot, drawn and quartered IMHO.
It is a useless waste of time and effort. And a possible security risk.
The only reason for this would be if full-drive (or at least C partition) encryption was used, and the intent was to simply "wipe" the system partition and reuse it, vs doing a scratch install. – Daniel R Hicks – 2013-05-02T01:43:35.150