Earlier quoted context omitted.
It'd be a cool physical demonstration at a cybersecurity roadshow. A concern: with all this computing onboard, does this mean a malicious USB-C cable could record screen and keystroke? Often the keyboard receiver is plugged into the monitor's USB hub and so screen and HID are both going along a single cable ... Which also does power delivery. Such cables are a definite "sales category" and could be a target for suppl…
I doubt you are going to fit a chip fast enough to snoop Thunderbolt traffic inside of a usb-c plug
It is possible that the tech exists, but isn't yet at a point that it can be easily mass-produced, which means "spy cables" may actually be available, from Q-types.