It gives a false sense of security at best. The crypto is broken at a basic level, trivially allowing things like key recovery, denial of service, block copy-pasting...
However, about BitTorrent crypto: `In an interview in 2007, Cohen stated "The so-called ‘encryption’ of BitTorrent traffic isn’t really encryption, it’s obfuscation. It provides no anonymity whatsoever, and only temporarily evades traffic shaping.` [1]