> > However, I believe it is not statistically
> > possible for an attacker to identify such a collision,
> 
> Of course there is. A collision is just as fatal, no matter what you
> use to process the I component.

Sorry, I forgot to say how you identify collisions: If you encrypt
(X,I) to get Z and encrypt (X',I') to get Z', then the condition 

  X xor X' = Z xor Z'

identifies a collision (with good probability). For those who like math
equations, assuming that all the ciphers there are replaced with truly
random functions, you have for every specific pair (X,I) != (X',I')

  Pr[collision] = 1/2^128
  Pr[X xor X' = Z xor Z' | collision] = 1
  Pr[X xor X' = Z xor Z' | no collision] = 1/2^128

This means that Pr[X xor X' = Z xor Z'] ~ 2/2^128, and therefore

  Pr[collision | X xor X' = Z xor Z']
  = Pr[collision and X xor X' = Z xor Z'] / Pr[X xor X' = Z xor Z']
  ~ (1/2^128) / (2/2^128) = 1/2

(compared to the a-priory probability of collision which is 1/2^128).

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