Fantastic! Thanks for compiling these resources so consistently, I know first hand it isn't easy @eosgo. 

This also clears up that only the hash is stored on-chain, the actual file will be stored by the block producer - "and Each BP will have to monitor file and log the info".

According to my back and forth with @rsjames and others in the gov channel, it was not possible to do with end to end encryption (user and system level). As I have gone through all the documentation, videos, discussions & whitepaper, it would appear that the current proposed EOS file system for the files themselves are not encrypted.

My <a href="https://steemit.com/eos-gov/@sf2/eos-clean-file-system-initiative-image-classifier-and-watcher-node">original proposal</a>  to address this issue for BPs (however flawed in my initial understanding) still has some merit. 

Would be interested to hear a more practical / elegant solution from others. I am admittedly still learning parts of the system (and the system itself is still being developed). If I have made a mistake or have a gap in understanding, please show me a better way of dealing with monitoring and / or filtering files on the same node (without using image classifiers) - this is how problems are solved.