Would be nice if they offered the option to remote encrypt and you can only decrypt with a visit to a Apple store. But nomatter what you offer, there will always be a way to offer a little more.
Your approach does leae users open to there own hindsight and if you lost a device you might in some situations reset the password first and then thing about remotely wiping the device and in those situations you will be a bit erked. That said it would be nice to at least have that option, options are nice as they allow the user to pick the level of control they want, more options more choice. Still be nice if a device being remote wiped checked its location and went - oi hang on your at home I need to verify this first, scary but doable.
I also find it strange this isn't the case. I changed my apple password and instantly my phone started complaining that it was wrong for iMessage and other services. Why is it still fine to remote wipe the device?