Base64 is not encryption. It's just a different format for the same data. Using Base64 is like swapping PNG for JPEG, it offers no protection at all, and only works if someone knows how to extract one format but not the other, which seems unlikely.
Base64 is also a text-based format so uses more space on disk and more memory too. So given how some people are worried about their games taking too much memory, that also seems like a bad tradeoff to make.
Yeah, you're totally right, but it's hidden in the code or in JSON files, so harder for anyone to look into it and to change back.
Also, I think the main use of this would be as I said to make 3rd party editors as there is no way to load animations and images from external files in C2 (tell me if I'm wrong tho)
I wouldn't bee to concerned about your content being stolen. If it's copyrighted material, you could always wave the big lawsuit flag at the perpetrators and I'd imagine that most of them would just drop the assets and go steal them from someone else.
Yeah, but most of the time people don't really care, because, either they did not pay attention to your warning, or they know you're not rich enough to actually open a lawsuit against him.