Neat, finally an easy way of transferring files between devices that doesn't rely on online services -- no clue why we didn't solve that ages ago.
Adding encryption shouldn't be hard, as long as you can communicate the keys out of band.
Could probably achieve the same result using audio instead of video, but maybe that would be too annoying?
Have a look at minimodem. In short: yes, but it's slow and annoying.
I had a Timex Data Watch over 30 years ago.
https://en.wikipedia.org/wiki/Timex_Datalink
It'd transfer phone numbers and calendar entries to the watch by blinking the screen of your computer. Kinda a 1 pixel version of this.
(I wonder where that ended up? From memory I threw it in a drawer when I finished the Windows 95 project I'd been working on, and switched to Mac. There was no Mac software to talk to it.)
As someone who has implemented acoustic modems (underwater comms)... yes, yes very annoying. It's like a demonic dolphin.
Bringing it into the ultra sonic band would help.
You can do PSK31 across a room with just audio, but it is a kind of annoying noise after a while.
It's interesting that you learn to recognise patterns in the burbling tones after a while. "CQ CQ CQ" is very distinctive and after a while you can hear your own callsign in it. I guess it's not that different to very fast Morse.
Indeed encryption should not be hard yet which situation do you have in mind where simply pulling away the emitting phone would not be enough? AFAIK the normal scenario is two persons in the same physical space so I am not sure what encryption would add.