as someone has has developed secure voip systems, day trading systems, and other secure real-time systems... i see no problem with encrypting the bandwidth. i have even heard of some companies encrypting the binary itself in order to secure the protocol and avoid memory monitoring (haven't figured that one out)
according to the various rants, the problem isn't that blizzard is downloading executable chunks and running them on your system whenever they want to analyze what you are doing... it's that they have encrypted the chunks and those looking to get around blizzards attempts at security are having trouble with it.
there are things happening at lower levels that should freak people out, but don't.
*shrug*
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