Couldn't be more impressed by Bunnie. It's always a jaw-dropping "no way" with this guy but this, I'd call this hack Woz level magic.
It sounds like you can't do some nice things like alpha channel transparency on the video with this method. Not a big deal, but a shame that this sort of innovation is being stifled legally.
So there's still a chance that Bunnie will get DMCA'ed on using the HDCP encoding key? I'm a little lost on what's possible and what isn't now that the keys are out there.
I always thought it funny that the spirit of copyright is to cultivate and encourage innovation, but instead it is being used to create fire-hoops to jump through to create innovation.
When something that is designed to help actually causes harm, it is then that you discontinue the thing causing harm.