Again, we're not speaking about the same scenario as I do not understand what you're talking about.

Under your scenario, yes you'd clearly need to authticate that user and yes the kinda encrption systems you talk anout would obviously be more than sufficent to protect stuff. Thats a no brainer.

What I was talking about was what you described here...
"... is no-zip no-exe, cloud-based, app-store-like transparent installation."
..there users have to be constantly connected to use it or download stuff, then the moment your connection fails (or the company decides you're not welcome) it's game over.

There what you need is a safety net/mechanism so the user can contine to work off-line if required. Kinda like how we work now, we buy products in zips, we use them offline and theres a copy in the cloud if we need a duplicate.

Pinky - you left the lens cap of your mind on again.