I think a variation on the Binary field type called Secure might be very useful. A field to securely store Credit Card numbers and other such sensitive information. The image below should pretty much convey my idea of a password protected, encrypted field that is still fully editable if given the correct password.
This could be a cool “demo” feature, but I don’t think it is at all practical. You couldn’t display this data, print it, search on it, sort it, calculate based on it, etc. (all of these would require decryption without the password, defeating the point). The only thing you could do is double click to see and/or edit it.
Also, it sounds like you are suggesting the possibility of a separate password for every record in the database. And if the password is forgotten, the data is gone! Oh boy, I can imagine the support emails on that one.
In a form, you could set this sort of thing up yourself with Panorama X’s existing capabilities. It would be tricky to make this sort of thing secure (good security programming is really, really difficult), but it should be possible.
Sorry to be such a wet rag on this. You obviously put quite a bit of work into the nice diagram!
All of about a half hour of quick partial screen shots and markups. It was just a thought anyway.