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> since all interaction with the outside world is still through the host, it would be hard to prevent the host from grabbing the raw decrypted video data as it leaves

Wasn't this part already paved earlier by Microsoft, when Hollywood wanted to guarantee no unencrypted HD video leaves the PC? It might have weaknesses but the principle is already estabilished.

A secure crypto path from black box VMs to smart TVs also leaves the door open for all kinds of nasty scenarios involving TV pwnage. You also will have no way of decrypting the data that the VM exfiltrates from your PC.




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