Decent pitch, JJ.

I would throw in consideration for...
11) a VPN service: for as little as $8 a month you can get them zero hassle fulltime encrypted connection anywhere they are connecting. Those kids are using those things in all the public places alot, and for keeping their delicate info many degrees less vulnerable to hackers and sniffers I think its well worth it.
You can get free VPN services as well, but they will probably disable it after encountering the hassles, so why bother - pay the $8-or-so and make it as easy and simple (transparent) as possible.

12) Install a good pass-phrases (code-) keeper and get them excited about actually using it and using a good passphrase to lock it, and using that instead of the one built into their browsers or whatever (disable form fillers in their browsers). They'll be happy with how it prefills website forms easily while also keeping any sensitive notes they want safe and private, even if the laptop is stolen (well, relatively safe, anyway).
fyi, Keepass is great for PC, and 1Password popular for Mac. And get them to learn to use passphrases instead of passwords, this is 2011.
(I just feel better knowing they are not scribblling bank and card codes and all sorts onto a notepad in the computer - ya know.)

I go for encrypting their drives too, but thats just me.
Appreciate this post - lets help our kids be safe, and ourselves to keep some colored hair.