> like how AACS is continuously updated as security holes are found and compromises happen, with the keys being rotated each time
And yet with consumer hardware you can accurately rip every UHD Bluray right on release day, without any trouble.
> Can you? I mean in practice, in a practical amount of time. And is that actually done?
Most of the time effort of encoding is already spent on brute forcing these parameters to most effectively match the original input. You just need to change the way the encoder scores each possible result.
> With FHE, the "take the machine apart and analyze what it does to get the original bitstream" would be cryptographically hard, so good luck with that.
So what? You could just distribute the encrypted datastream and the key you've extracted from a device, say a smartphone you bought from an electronics recycler.
Also, I don't see how FHE with video would be possible in the next decades, considering the limitations to Moore's Law in recent years.
Video codecs are extremely complicated, requiring lots of memory and processing power.
Ten years ago, even the best gaming PCs couldn't handle software decoding. Even today many mid-range systems can't handle software video decoding.
Even hardware implementations regularly require more power and memory than the entire rest of the system. There's a reason Raspberry Pi's are primarily a video decoding chip with a CPU as coprocessor, which is why the GPU runs the bootloader.
Video is constantly at the limitations of what we can physically accomplish.
Your suggestion would require spending a massive chunk of silicon area of a SoC on a FHE decoding ASIC that would only be useful for the small minority of DRM-encumbered content people watch.
And every manufacturer, every device, would have to join, for it to make any sense at all.