If they block bitcoin traffic due to traffic shaping, they had better have a good reason or else the backlash will be huge. In any case, just like many other protocols, they will just change the packet format, or make it look like something else.
Did you know I can send an encrypted packet which looks like a JPEG to a knowing client, which will then decrypt the contents into an entire packet containing a bitcoin reference? This is exactly how bitorrent encryption works. The packets now look like some other kind of content and data shapers risk blocking all kinds of innocent content if they attempt to wall it off.
This kind of "doubly encrypted packet" as you call it can be isolated and identified, but to do it on the fly as DPI systems are supposed to work is impossible with today's technology.
You said: "please explain how the receiving bitcoin peer can interpret the packet content without knowing the format"
"Hello, this is Bitcoin, if you find your transactions not working today, please update your wallets to the latest version. Thanks!" Really, you are pretty naive for a self-described computer engineer.
Please show me all these stories where cops are selling drugs to criminals in order to make busts. The way you tell it, it sounds like a veritable epidemic.
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