Full disk encryption has the advantage of being transparent and not application-specific, so you don't have to teach every random application to do application-level crypto.
Sure, if you have a few specific files you want to encrypt, you could run gpg. You could even teach specific tools to understand gpg, such as text editors that can decrypt to memory, edit, and re-encrypt before writing to disk. But what about a source tree, stored in a git repository, regularly manipulated with git and various command-line utilities, and edited with a variety of editors? How would you store that, securely, other than on a block device encrypted with full-disk encryption?
Would you suggest a file-level encrypting filesystem instead, similar to eCryptFS? Would you suggest integrating encryption into ext4 (currently being worked on) and other filesystems?