All security is always a matter of cost. Clown theater starts once you lose track of it, and start doing security for security's sake.

RE obfuscation and nation states - nation states have finite budgets too, both in terms of resources and attention. They can crack any system at any time, but they can't afford to crack all of the systems all of the time.

The cool thing about cryptographic security is that it's an asymmetric amount of cost for both parties - to encode is cheap, to break is many orders of magnitude harder, unlike obfuscation where the difficulty is approximately symmetrical.