Sorry, we're talking in loops. The legal issue wasn't encryption vs other cryptography, it was export or not. 7800 did face that issue, and resolved it by making the non-US version not do the crypto. This was probably easier in their case due to PAL vs NTSC. :)

I think both of us might be making the error of correcting something the other person wasn't intending to comment on! :)

Some export complications around crypto exist to this very day-- at least for commercial hardware products. I've had to fill out the export forms myself, and not that many years ago.