By messing around with encryption of LibreELEC i patched init with 2 hooks to mount things/ask user for password and so on, so that i dont need to rebuild LE every time i change the init script.
The second one is to configure how much RAM is needed to copy the SYSTEM file to RAM before mounting it. For me on RPi2 it workt very well with "SYSTEM_TORAM_LIMIT=680000" as kernel parameter. The hardcoded limnit in init is 1GB.
So here it is init_patch.txt
Thanks for reading my proposal