I agree that he doesn't exactly seem to be drowning in skilled devs (seems more likely he's trying to do most of the dev work himself) but both UE4 and UE5 support encrypting network traffic, specifically for the purpose of preventing packet sniffing, so it's not overly difficult to implement.Yes he is, and he only "successes" in his scam because his "patrons" are even more stupid. Also he is too cheap to buy proper protection or normal programmers.
Denuvo also only costs ~$150k EUR even for AAA devs, which might seem like a lot but is a drop in the ocean really. It's also likely cheaper for smaller studios launching games with a smaller target demographic where they can get away with older versions and don't anticipate as many activations. VMProtect and other systems are a few orders of magnitude cheaper still.
Given that Helius is completely scrapping any single player content, seemingly in an attempt to make sure people can't just enable all his season pass content and skins etc. without paying, this seems to be the only area that he actually takes seriously. Might still lack the skill to implement it properly but I'm pretty confident that attempts will be made.