This doesn't sound like a bug in gnome-terminal; normally something like that is a case of the ecryptfs mount program
turning off 'echoing' before asking for the password; it sounds like it didn't trap the ctrl-c and turn it back on before exiting.
(If this only happens in gnome-terminal and not say xterm or konsole then I'd change it back)
Changing to ecryptfs-utils.
This doesn't sound like a bug in gnome-terminal; normally something like that is a case of the ecryptfs mount program
turning off 'echoing' before asking for the password; it sounds like it didn't trap the ctrl-c and turn it back on before exiting.
(If this only happens in gnome-terminal and not say xterm or konsole then I'd change it back)