Earlier quoted context omitted.
I'm aware of the benefits of using cookies for session state, just not sure encryption itself offers serious benefits without encrypting the entire browser session via SSL. And it may offer disadvantages from an understanding standpoint, where people think the encrypted cookie provides more security than it actually does.
If properly encrypted with an authenticated encryption mechanism then the server can be sure that the data has not been modified and has not been read. This would allow private data to be stored. As long as the server is the only one that knows the key, then only the server can read it. An evesdropper can still use the cookies for replay attacks, but at that point they're on the connection already. It's useful for th…
(2) If someone has your cookie, they're either already on your connection or they're on your computer.
(3) The only situation where this provides any security is one in which you store data in the cookie that would not be accessible to the same user through the site. I can't think of any such data in any of my experience, but I will absolutely grant that such data may exist.