Except the code has to be decrypted to run on the cpu. The only "uncrackable" (in the very crackable ps3 sense of the word) way is to have a cpu on the dongle with signed firmware.
First of all, "IT" encompasses a whole lot more than you think. So yes, a broad field such as that should be able to escape across-the-board HIPPA-style regulation. Secondly, absolutely anything can be said to endanger national security, as we have seen. So dont think this wont expand past its stated purpose s decade or so down the road. Lastly, you know as well as I do that the best solution is the threat of serious fines for a business that gets hacked and lose sensitive data, but clearly the government is not interested in any legislation that would have to be used, only legislation thay they have the option to use (govt IT security audits wouldnt hit campaign contributors very hard, now would they? Fines after the fact would.)
if emacs or vi will support gesture recognition first.