That is totally incorrect. Only digicap.dav header is XOR'd in newer firmware. Files inside the dav are encrypted using 3DES-ECB. The keys are in the uImage.
Newer kernels provide /dev/hikded device and IOCTL interfaces used by /bin/ded to encrypt/decrypt files. Still, this does not protect anything from anything. You can still decrypt/repack/encrypt lzma files, update their MD5 checksums stored in new_10.bin and boot any firmware.