In the case where someone is swearing with their friends over an encrypted channel, it's just not a problem, no child will hear the swears without a quantum supercomputer.
In the case where a business is illegally using ham bands to avoid paying license fees, they can already do this, nobody is actually checking. You can encrypt P25 on the bands all day long because nobody has radios that work with that digital mode and nobody will spend the time running signal analysis to figure out that A) it's P25, B) it's encrypted and C) where it's coming from. If it became rampant the FCC has the tools to very quickly figure out all of these things and if the broadcasts don't have a call sign and are coming from a business premises then it's obviously breaking the law anyway.
If it could be a problem, it already would be. All the Chinese digital business radios support encryption now. We're just not allowed to use it because people are scared of bogeymen
No, it isn't an instant 100% chance of retribution.
One call to a regulator, and it's done.
If everyone starts chatting with their friends on encrypted channels, we don't really have a community anymore. It was never meant to be a private chatbox.
I think it should be a bit less rigid in this day and age though. For example it should be allowed to use encryption for authentication purposes IMO. It's too easy now on digital modes to fake someone's callsign. Brandmeister has built some cool stuff with one time password but more complex authentication mechanisms aren't allowed. Apparently the FCC allows an exception for this but not every country does.
I have no doubt it will be a huge mess and take a few tries to get right.
We should get started already -- if we don't, HAM will die, and it will deserve to die.
If everything is encrypted, how could you tell? How could you even tell that the users were licensed?
Also: progress has changed the landscape. HFDF used to be difficult for the military but now it's easy for hobbyists, and not just in last-mile form, but in coordinated always-on infrastructure form. The regulations were not written with this in mind. With an active community this fact alone might obviate the need for many a regulation.
Most people who complain about the encryption regulation just completely disregard the reason for encryption in the first place (ie, all other regulations become unenforceable if encryption is allowed).