It is true that the encryption methods used by the client and the core need to be kept secret, which kind of necessitates closed source code. However it is also true that the Pande Group has limited time and funds for client development, which would suggest Open Source is the best method to go for rapid development. Would it not be possible to use both of these methods in client development? My suggestion is that the secure code in the client is seperated from the client into a seperate file (maybe a DLL) made available in compiled form only, with a clear, documented API on how to use it. The rest of the client, now stripped of the code needing closed source could then be made open source allowing for faster patching and quicker addition of new features, without the downsides experienced by BOINC in the need to repeat work to ensure it is correct.
I must make it clear that I am not a coder, so I have no idea if this would be feasible or not, and I guess given how long it has been since it was first said that v7 was in development that that must be well along the way to release. However, for future client development after v7, would this be a possible/viable way to go? Discuss

EDIT: I should add that this would not affect the FahCores, which would remain closed source by necessity.