Not if the key is the public key of the current user account using resources on the server. Again, I'm out of my field of expertise, but it sounds like something feasible.

The terminal would be the only unencrypted part of the process, a terminal that could be anything ranging from another computer to a screen. All you have to do is to plug your hardware stored keychain to a screen with no data connection (expected encrypted video signal) to the server to get the unencrypted output.

That's going far, but that looks like a nice objective that could start with a processor that would allow a part of it.

Agreed, but any type of progress can be used for good...or evil. In this case it's only a feature, a tool that can be an improvement in this type of product. One more choice instead of no choice.

I may be way out of my field of expertise here, but I remember a nice trick that allowed to get information back from a live encrypted system by freezing the RAM http://www.zdnet.com/blog/security/cryogenically-frozen-ram-bypasses-all-disk-encryption-methods/900 .

It would be quite nice to have a end to end internally encrypted system. This kind of hack does not make a lot of sense from a personal use point of view, but when using a server, yes.

Maybe calibrating the test with a statistical deviation tolerance from the host DNA can be used to identify it ?

If it works with early forms of cancer, this is nobel prize material.

I think you overestimating the knowledge legislators have of the hacker world, as well as the irony of my comment. I'm a firm believer in "curing" criminals instead of punishing them.

I'm sure we can argue back and forth on the "good" or "bad" intrinsic nature of the human beings. From an evolutionist point of view "good" behavior (not in a moral way but in a rational way) within a group being the norm, and bad behavior being the anomaly, makes more sense than the opposite. ...or maybe the "hope" I'm exhibiting is biased by evolution as well...

P.S.: Comment not applicable to large entities such as states. See http://en.wikipedia.org/wiki/Milgram_experiment for more information on this exception.

Think about it, they NEED to keep him in jail for at least 10 years : this is the only way to be sure that his "dangerous" knowledge about the interwebs will be obsolete enough to be harmless !

JUSTICE !