What proposed method? I'm explaining how things work. In order to send a packet, the destination address needs to be known to the delivering entities. Encryption occurs by using enveloping, the envelope is unencrypted, but the content is encrpyted.

This is how it works, if you want I can explain to you why it works like this, or you can work it out from first principles. But this is not a proposal.

VPNs are an asterisk and they work not by avoiding this natural unavoidable principle, but by tunneling, the VPN or proxy vendor is putting themselves on the headers, and on the backend they still route the packets to the destination by putting the intended destination on the headers.

If these VPNs don't comply with local regulations and are used to evade national restrictions they can and are often themselves subject to bans. But even if not, it acts as a sort of waiver and compromising element for all illicit activity.

Sometimes it's not necessary to completely outlaw something, it is sufficient to make it so that engaging in the outlawed activity is sufficiently uncomfortable and clear that it is illegal, forcing users to undeniably acknowledge they are avoiding the law. An example of this is trying to watch pirated movies without paying for them, yeah you can do it, but you gotta do some shady shit and dodge a lot of malware, and eat shady gambling ads and etcetera.

In addition to making you feel like an asshole, it removes any recourse you may have, it's very hard to make any claim later, you cannot really complain later if you were accessing it illegally to begin with. Nobody is going to pursue you to the end of the world not to access a pirated movie or an illegal website, but they pursue the distributor and make things very uncomfortable enough so that you are effectively hiding like a fiending outlaw.