This doesn't work well in practice at any kind of scale -- these types of databases have existed for many years. The key management overhead is considerable, causing integer factor loss of performance for database-y systems. Additionally, it very significantly increases the storage footprint since most techniques for minimizing storage utilization no longer work given this requirement.

It isn't just "technically complex", the limiting factor is your system may be 10x slower and use 10x more storage. The economics of operating these systems is so poor that they are only used in extremely niche environments where the requirements justify the extreme cost and performance limitations.