Bug? iTunes forced me to encrypt backup - I don't want this. How can I stop it?

It's all in the title really...
When I just did the latest sync of my wife's phone, iTunes insisted that the backup needs to be encrypted. I looked down, the option is unchecked. It has never been checked. I unplugged the phone. I shutdown itunes and rebooted. But when I plugged her phone in again, it again has said I MUST encrypt this backup. Why have I never needed to do this before? Why has apple decided I must do this now?
So reluctantly I put a password on it, thinking that once it's on, I can uncheck it later.... nope...
So I enter a password, which I REALLY don't want to do.
I sync, backup complete... The encryption option is now dulled, I can't uncheck it...
Changing the password does nothing to remove it because you can't leave the new password blank.
I have not forgot my password, I just don't want one.
and please, no suggestions or comments that I should encrypt them all, it's up to me. I just don't want it for either of our phones!
edit: and now it's done it to my phone too... This is BS...
I have included a couple of images to show my point, this is for my phone, I have yet to create a password for it, so you can see the checkbox is still off..
and then when I cancel...
Why does this phone now REQUIRE the backup to be encrypted?
I hope someone has a solution here, because I've already researched people losing data because of forgetting passwords and the like... I just don't want this stuff stuffed up in any way, I need to keep this as simple as possible for my wife!

Ok, I'm back home now, and I've uninstalled the profile that was required by the M1 carrier in Singapore (free plug). Doing this has allowed me to make an unencrypted backup of my phone! YAY!!!
It has also allowed me the option of UNCHECKING the encryption option on my wife's phone...
As you can see, I can uncheck it, and it gives me an option to enter the password to UNLOCK the encryption.
This has now been done and encryption removed!!!
Message was edited by: iMadivad - in trying to unlock the backup, I initially used the wrong password. I had actually put the innitial password in incorrectly. It took quite a few goes at getting it right, I had mistyped a double character sequence. I had at least 10 goes at getting this right, it appears there's no limit to the number of times you can try and get the password right - I suppose, this is why there are brute force attacks on unlocking this file out there.

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