I used to work at a company who used to do this, but I'd argue that it almost never does what you want re: concealing the input space. There are so many ways to recover the input space from the latents, and often they are constructed expressly to contain exactly enough information to do precisely that.
But how much effort would that require? ... is what I was going to say but in this age of "claude reverse engineer this doohickey" maybe the better question is how much compute and how many tokens it would require.