Imagine a central exchange building, serving few million customers in a region, each connecting from VT110 over ISDN line, handling imagined Internet thing pre-Internet. Something like “Tanaka-san is making a golf course reservation using easy to learn SQL language”.
FHE-based database fits the bill there; there’s a risk that equipment technicians might get hold of a key. FHE can offer protections all-around.
Performances and privacy of logic is irrelevant; it’s responsibilities of service providers to account for technical implications. Code to run is supplied. Customers are not required to/expected to write it.
Researchers doing FHE works today would be fully aware of Internet, but models in some papers to explain it might still carry that Transatlantic accent.