I realize this will sound like I am beating a dead horse; however, I've read many, many threads and comments on this topic and am not quiet satisfied. Maybe I'm being too specific and need a more specific answer.
This is a two part question.
Scenario ONE: Time and again I see the question of whether or not ISPs can see detailed information on users activity and repeatedly see the answer "No, they can see the URL but nothing more on httpS, etc."
Question: Why can the ISP NOT see what is coming through their servers? In my mind I see it like this: Hi, I'm Skynet ISP. I see that right now IP#THIS is on http Google and he's looking up homemade taco soup recipes. That IP # is assigned to Hugh Jass.
And here is IP#THAT on httpS Yahoo. That IP is assigned to Pat McCrotch. Even though it is a httpS, I still must be able to decipher what is on the page to make sure I transmit the data properly. Yahoo is delivering an ad about Clash of Clans, Headlines of a presidential assassination and Microsoft going bankrupt.
Oh, Yahoo just delivered video results about college orgies.
And... this is odd, IP#THIS&THAT...assigned to Mike Hunt is on a strange looking URL... .onion. Oh, he's using Tor. I'm going to open Tor Browser and see what is on that page. Looks like Mike is shopping for unauthorized medicine. I'll log this and save it for law enforcement.
Scenario TWO: On the other end is the FBI running DeepWeb markets. One site sells unauthorized medicines. The funds go to support the Bureau in efforts to rout out cyber-criminals. Maybe even bust a few customers here and there since they have their address. Looks good in the papers to see the Bureau busting people for online drug deals.
On another page the FBI runs a photo & video page of underground porn, jihad execution videos, hacker Anonymous video messages, etc.
Question: Would it not be possible that embedded in the photo or video metadata could be a homing beacon? Every time the beacon hits an ISP, relay and final destination the beacon would "phone home" to announce it's current location thereby exposing the users and relays and final recipients of the requested information?
It seems to me that the only way to be completely secure is for you to produce your own encryption software, hand it to me on disc and I install it on my PC. Then when I go to your encrypted site and the data begins to transfer thru my ISP they have no way of decrypting the data because the decrypt software was never online.
Fin. Please tell me how I am mistaken in my suppositions. Thank you all for your time.