dcpremex,

Two separate arrests of TSA employees for stealing items in checked baggage have been in the news within the past month just at Denver Airport. Considering the low probability of arrests being made in such cases and adding that to the anecdotes you'll find here on FlyerTalk, there's been a convincing case made.

I hear your point about baggage handlers also committing theft - but that was precisely the point of locking checked luggage in the first place. Now that TSA won't let passengers lock their luggage, it's vulnerable to both TSA and baggage handler theft.

There have been numerous reports, on FT and in the media, of the TSA cutting open TSA-approved locks. The passenger isn't with the luggage when this happens, so there's no way to prevent it. Also, once a theft has occurred, the airlines and TSA blame each other, and responsibility in these cases legally resides with neither. It's just not worth the risk to check your belongings. I'd say, carry on or leave it behind.