Governments don't exist in a vacuum. A Theocratic government wouldn't exist without people wishing to be governed by a Theocracy. So I think your most immediate issue is with the desires of the Palestinian people.
On a straight road, both tires spin at the same speed. On a curve, the difference in tire rotation causes the smaller gears in the differential to spin. If those gears were connected to a motor you could choose to spin the tires at a different rate any time.
I'm not convinced that this is as efficient as a normal gear system, since it will take power to spin the second shaft.
Of course such insane arrangements with respect to investments lead to a portion of the financial meltdown.
This may be a valid analogy, but I can totally see it getting out of hand.
The Pirate Bay Trial, Prosecutor:
"Your honor, what The Pirate Bay is promoting, in essence, is the same thing that caused the meltdown of financial systems worldwide!" (followed by dubious lines of logic.)
That's an excellent point. Although I think you're arguing against wholesale encryption, I'd stop a little short of that and say that an encryption policy is incomplete without a disaster recovery policy.
A big difference between JetBlue and Amtrak is, Amtrak is a government-owned company.