After the player is authenticated, he receives a random, unique identification token. Every packet sent by him includes the token. A typical message would be:
token sequence_number commands
The problem is that, if somebody saw a packet, the person would be able to act as the player and give all the player's coins to somebody else for example. Or read the player's messages, or do anything short of stealing personal info.
So I thought encryption would be a requirement. But I've found many people advocating against it, one even says "it's complete paranoia" (https://gamedev.stackexchange.com/a/25551/33993).
Is there a way to avoid MITM attacks without encryption? If not, is avoiding them unnecessary?