I'm not talking about the possibility of breaking FHE, though.
What I don't understand is this: if I get encrypted data from someone and, without breaking that encryption, I can perform computations on it that yield a sensible result (even if the result is also encrypted with a key I don't have), then how does that not mean the encryption has been weakened? If the encryption were strong, that should not be possible.
Actually breaking the encryption is a different thing, and I wasn't questioning that.
The operations used to perform these computations are utilizing algorithms backed by lattice-problems that are NP-hard to break.
edit: The only leaking information in this case are what operations you'd like to perform on the encrypted data. e.g., you now know that you've incremented the password by x amount, but you don't know what the plaintext was before, the plaintext after, _or_ infer what the value is by knowing you've modified the encrypted data by x amount.
edit2: Now I think I understand the question. The encryption is technically weakened because you can know what operations are made on the underlying data. Though it's still an advancing field, and there are promising developments with what's called circuit privacy[0] to prevent the server knowing the operations made as well.
Your assumption that operations leak info is just not correct. RSA has homomorphic properties (you can multiply two RSA ciphertexts and get the encrypted product of the plaintext), just not enough to enable general purpose computation.
I think the disconnect is that you assume that being able to do useful computation on some data implies that it must be possible to derive some insight into what the data is (side-channels or the like).
It's a fair assumption to start with. But the folks building FHE basically claim "nuh-uh", and I haven't seen anything to indicate they're wrong. Maybe some new Math grad will sort it out.