> A concern: with all this computing onboard, does this mean a malicious USB-C cable could record screen and keystroke?
Keystrokes: Easily. At least for USB 3 and 4, USB 1/2 data is a physically separate channel that just happens to almost always be packaged alongside the faster stuff, so the lower speed stuff like input devices is easy to intercept. I don't know if Thunderbolt does the same or not, normally USB-C alternate modes still keep the USB 2.0 signals available but Thunderbolt might be an exception.
Screen: Probably not modern video modes in a purely stealthy cable formfactor *YET*, at least not using COTS parts, but it wouldn't surprise me to find the secret squirrel types either already have it or are working on it.
Keystrokes: Easily. At least for USB 3 and 4, USB 1/2 data is a physically separate channel that just happens to almost always be packaged alongside the faster stuff, so the lower speed stuff like input devices is easy to intercept. I don't know if Thunderbolt does the same or not, normally USB-C alternate modes still keep the USB 2.0 signals available but Thunderbolt might be an exception.
Screen: Probably not modern video modes in a purely stealthy cable formfactor *YET*, at least not using COTS parts, but it wouldn't surprise me to find the secret squirrel types either already have it or are working on it.