I assume that's encrypted for obvious reasons. However, encrypting live video feeds requires a lot more prepossessing power than encrypting telemetry so they apparently left it out.

Honestly, from a classic military standpoint encrypted video does little for you. If you can intercept the transmission then you know where the drone is. The only advantage is knowing what it is looking at, but a traditional army is large enough knowing something is in the area is enough. It's only gorilla style fighting when it becomes particularly useful.

Guerrilla, BTW.

The thing is, these drones' primary use is against insurgents, AFAIK.

It is now, but I don't think this was intended to their primary mission profile when they were designed, over a decade ago. A lot of the intended uses were more traditional than the ones that reality has presented.