There are applications that are currently doing this without hardware support and accepting much worse than 95% performance loss to do so.

This hardware won’t make the technique attractive for ALL computation. But, it could dramatically increase the range of applications.

Agreed. When I was working on TEEs/confidential computing, just about everyone agreed that FHE was conceptually attractive (trust the math instead of trusting a hardware vendor) but the overhead of FHE was so insanely high. Think 1000x slowdowns turning your hour-long batch job into something that takes over a month to run instead.