My question is about security defined through space complexity. Suppose I have an encryption function $C=E(K,P)$ for which it can be proved (algebraically) that given $P,C,$ the possible keys which match the equation belongs to a set $S(P,C)$ of exponential size but $$|S(P,C)|\ll O(2^{\ell(K)})$$ where $\ell$ is the key length.
Then the key can be verified in parallel in polynomial time breaking the scheme in polynomial time by parallel computation but far better than brute force search. If no other estimate of $S(P,C)$ of smaller size is known, can this be considered a secure scheme? In such a case can the security be be considered weak if $|S(P,C)|$ can be shown to be bounded by sub exponential size?