'lolnope' is being EXTREMELY generous. My older brother used to work for gaming companies (programming and localization) and currently makes a living programming and cracking codes for the military when he's not training fighter pilots and travelling the world, and his reaction to the encryption on iM@S 2 models and data was pretty much 'dafaq is this crap'. Take that as you will, but it basically boils down to iM@S 2 being one tough cookie.
FFFF, maybe Namco's got plans for some sort of mind-control device in there. To get us to give them all our money.
iM@S 3: Idols in SPAAAAAAAAAAACE.
Some of the data has been successfully taken as it's been used to backport some material from im@s 2 to Live for you, as well as do some adjustments (like removing models, allowing for blank spots for some songs, or having a Haruka army, or getting everyone to forget their lines among other things) to make it all work.
If you're wondering what I mean about the backporting, here's an example:
http://www.youtube.com/watch?v=FzYOe2PhDV0Of course, if you want to talk this secretive group into SHARING their work, well, that's a different story.
I understand it's a mostly proprietary engine (Coupled with Lua) blocked by a XOR (standard 360 encryption), and the XOR was apparently the EASY part of the operation and apparently was smacked out by a *chan group relatively easily. Figuring out what to do with the blobs of data, and then figuring out the checksums and where they were stashed apparently was (And still is) the hard part. (Yep, altering the files aren't enough.)
Of course, I'm not a programmer, and as much as I'd like to recruit a secretive group of people, the real problem is their focus is on models and the like, where we'd (ideally) want access to the text. I've an idea where to direct efforts, but I'm only a novice programmer at best, and all I can provide is a stupid amount of resources.
Then there's the whole legal issue. I don't think I'd need to go into detail there.
As a technical exercise it'd be a lot of fun though. The problem is the amount of skilled people who'd be willing to invest serious time into it are slim, to say the least.
And they already did the space joke. What do you think the UFO in Space stage was FOR? Sadly, the only thing they didn't include were the spacesuits from L4U.