"I'm sorry to report, but your key has resulted in 12 collisions.... wait.... accessing the Basekey information .... unique file found from key."
Now, although there were 12 collisions (where other files started and ended at the exact same place, had the same number of 1's in their files structure, and otherwise fit all the criteria, 11 of them had at least 1 bit different in the initial 64K Bit Key included in the 4K file, so the program was successfully able to weed out the other 11. But let's say instead of that, we get this message:
"From unique key sampling, there are still 2 collisions, what would you like to do?" You access: "save both to disk." Now you have two files on your desktop. You try the first one in your videoplayer and it doesn't work. You try the 2nd, and your movie is playing right before your eyes. You take about an hour to try and see what the 2nd file is ... you try it as PDF, Doc file, Zip file, audio, everything, finally you discover it's a 3DS Max scene file from some guy in Florida who does 3D work for some studio there. Amazing, it's exactly the same size as your file down to the last bit, but it's an actual working file that someone else made. Now you have to wonder: who made the file? That man, or Nature? Nature came first. And it's numbers don't change. Maybe the man discovered the art he is making through accessing Nature? Creepy.
But perhaps this is how we solve the overlapping argument once and for all: we let the software detect collisions and give the user options about how to work with them ....
A single 5 byte file: "Hello", results is many many more than two million collisions.
There will only ever be more collisions the longer the file is.
A 100MB movie file would result in more collisions than could be saved to a hard drive.
You are going to ignore this, by saying that your theory magically only works on large files not small ones, which conviently means that we can't run a test program to demonstrate you are wrong.
But you are wrong.
If two 5 byte combinations give the same hash, then any pair of files which are exactly the same, except that they each start with a different one of those 5 byte combinations, will also give the same hash.
Making the file bigger just stops us demonstrating that you are wrong, it doesn't make you right.