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Of course process separation can be done at the software level. No one denies that, in fact that is how lower assurance systems do it. Your crap about it being a choice... no ****ing duh, a choice REQUIRED BY HIGH LEVELS OF ASSURANCE.
"in order to achieve high levels of assurance, process separation needs to be done at the hardware level. "
"It shall make effective use of available hardware to separate those elements that are protection-critical from those that are not."
"I said that process segregation at the higher security levels needed to be done at the hardware level "
"One more point on this subject, to achieve high levels of security, such as TCSEC B3, which is more or less equal to ISO-15408 EAL6 with regard to assurance require data segregation at the hardware level "
Do you see theme yet? I have already quoted the an instance from the standard that specifically states hardware separation is required... are you saying that the standard is wrong? And in fact you don't need to follow that part of the standard in order to reach that evaluation level? Do you have a point, or are you just trying to make yourself look smart?
In your quotes it's not hardware separation but seperation of data on a hardware level. Any hardware does that and the standard is there because data that comes close to eachother phisically "might" have an effect on eachother. That possibility should be reduced to a minimum. How you do it is a choice not a requirement since the hardware requirement is already met without modification. It can be improved but it isn't a requirement since there's no exact indication to what extend the seperation should be.