> The point this paper is trying to make is that we should be using safety margins based on knowledge rather than perpetuating the numerology that's been in-place to-date.
Yes, but we should also understand that additional computing, in most situations, is really cheap, and that compromised cryptography in wide use is inordinately expensive.
> The very same argument you're making here can be made regarding switching to 512-bit keys. And heck, why not 1024-bit keys too.
We know we need at least like 80 bits to start to be safe against brute force. 128-256 bits are reasonable "round number" sizes that have a keyspace in large multiple of this.
> A) The key size & number of rounds aren't where the security issues are today
They're a key part of the security of the thing we're actually talking about (the cryptographic algorithm) and excessive key size and number of rounds has often rendered actual algorithmic weaknesses unexploitable in the past.
> B) We have a sufficient margin of error and understand the space well-enough that we're likely OK to use existing symmetric encryption with fewer rounds & smaller key lengths.
Maybe. And again, why?
> C) If you're a target of an attack the encryption keys are unlikely to present a significant challenge as attackers will choose easier alternate vectors.
You could use this argument to make every single bit of the security stack (equally) weak.