The basis of this thread is FUD.
(Fear Uncertainty and Doubt)

Blizzard has a goal to eliminate cheating in their game. Something which you can choose to play or not. If you aren't satisfied with Blizzard scanning your filesystem (where they can ZOMG see your personalz stuffs!). Don't play. You agree to it in the EULA. If you think the risks are greater then the benefit, DON'T PLAY. They aren't forcing you to play, it isn't the only game available. It's a choice you made. Deal with it.

If you don't trust Norton anti-virus to scan your system, don't buy it. Sense a similarity?

The 2 changes everyone is in concerned about, are only changes that affect bot makers. The ability to see what warden is doing, is still available. As stated above, every system call it makes is STILL VISIBLE.
The change is that they don't know what warden is GOING TO DO, BEFORE IT HAPPENS. Hence they all of a sudden become very vulnerable.

Warden is NOT A ROOT KIT. Therefore it is still detectable by the OS, and can have its actions monitored by other processes. It can still be detected IN WoW, a root-kit is created to prevent the above from happening. The only change here is that people can't reverse engineer Warden, and predict what it is going to do before it happens. Now you can only monitor what it does WHEN it happens.

So zomg, whats happening, its encrypted! ZOMG!.
Encryption is used on so many levels on your system, the fact that WoW traffic isn't encrypted should be more concerning then it being encrypted now. How do you like your password being sent plain-text over teh interwebs. You don't do that for ANY OTHER REPUTABLE SITE YOU VISIT. (check for Https)

Furthermore, the encryption is being used to hide traffic from warden to the servers. Therefore no one can see what warden is saying to the wow servers. Oh god no? They could be sending personal information?
Well to get the personal information, they have to get it off your system. This can be monitored by programs, as it is not root-kitted. Hence your fears are unbased.

Polymorphic wuzathingy? Polymorphic code is code that performs basically the same actions, with changes in its byte structure. The whole intent of polymorphic code is to prevent detection from scanning software. The version of polymorphic code that blizzard is using, is almost a falcity, as it (from what I read), isn't changing it self (as polymophic code would), but is mearly 318 versions of warden being used.

These 318 version present problems to BOT writers, because they don't have time to react to changes in warden to circumvent detection. Even moreso, blizzard was smart enough to ensure that encryption algorithyms are changed for each of these versions (yay!), so that they aren't using the same key over and over again (makig it easy to crack).

So end result of these changes are this:
*You can't veiw wardens traffic to the server, therefore its harder to detect what it is doing/sending. Only really a concern to bot developers, as the quicker they can find out what warden is scannign for, the quicker they can avoid said scans.
*You can't predict what warden is going to be used. Therefore you don't know what scans its going to do, and how to avoid them. (GG Bots)
*Warden is not a root-kit. Its actions are still visible to the OS. It's not hidden. You can still have a high level process monitor your filesystem access requests, to see if warden is accessing your tax returns.

So take off your tinhat. And if you want a tinhat, stop playing.