Why? Does Flock really care about encryption? It checks off a box for their sales team, even if it's done poorly.

Because data should be secure. Full stop.

In a perfect world, yes, but this is a for-profit company and there's almost zero repercussion for doing it half-assed. They'd have to pay someone to implement it, and deal with the overhead and complexity.

Now they are in a position where they can sell new models with enhanced encryption and more features.

If it increases development or operating costs by $1 they won't do it unless there are consequences that could cost them more than that.