Hi Granular,
Yeah, no issues at all with using software-based encryption; it works and is well-supported, which are huge factors in day-to-day usage, but I'm curious about SED. My thought is more poised surrounding performance and effective usability; if there's a hypothetical 30% cost difference between a standard NVMe and a SED NVMe, but only a 1% performance benefit, then it can be easily dismissed, but if it's performance benefit is greater than it's cost difference, that's a conversation to be had...
Without knowing your specific laptop make and model, I'm only guessing here, but that sounds like a Bitlocker-style encryption method, which does encrypt and then de-encrypts the entire drive each time at startup. Not sure, but the speed of that may depend on the complexity and type of encryption used; less complex being quicker to 'solve' and vice-versa.
I believe that the reason that there isn't a hardware-level implementation as you described is because volumes are recognised at the BIOS level as different to whole drives, in a similar way as a parent folder is different to a child / sub folder. So I think that you always require a higher-than-BIOS level software to treat hidden volumes correctly, or in that use-case.