File Transfers and the DVD Requirement

Some people wonder why they must download a bunch of data and insert a DVD.
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What you are actually downloading

When you download certain games that warn you that you will need a DVD later, you are actually downloading the full games in encrypted form. The DVDs are only used for decryption and no actual data on the DVDs are converted and used.
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Why does DaphneLoader seem to hide the fact that the DVDs are used for decryption?

DaphneLoader is designed to require the user to know as little information as possible in order to run the game. Therefore, all details that aren't required are hidden from the user in order to keep things simple. Those who want to learn more will search documentation like this in order to satisfy their curiosity.