I've just updated the explainer (IDL and example) to reflect the current state of the specification. Sorry for the confusion. https://github.com/WICG/picture-in-picture/pull/51
The S&P questionnaire has been filled at the same time as this TAG review request and is available at https://github.com/WICG/picture-in-picture/blob/master/security-privacy-questionnaire.md
Use cases for canvas and HTML content are exciting indeed. There are many security aspects that would need to be addressed though. What we'd like first is a minimal viable product and iterate from it.
See https://wicg.github.io/picture-in-picture/#security-considerations
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