Re: Security
That would work until exactly one person tells someone outside the circle of trust the details. Given the basics of its operation is taught to all commercial pilots I'm not sure how you think anyone could keep a lid on it.
Mind you I'm not sure they've actually proven an ability to usefully spoof it either. At best they're going to have an aircraft say it's further away from another one than it really is, but the windows will still work so they won't have achieved more than just turning the transponder off.