I was hoping that there would be a way for me to convert the folder into an ISO and then get the data from it through HashCalc but as we said before it would still be a decrypted ISO.
It's easy enough to replace the encrypted files in the iso with the decrypted files, however editing the iso header to reflect the new contents is a question mark (maybe nulling the hashes works? who knows, there's no iso loader to test it on), and you'd need to dump the disc as both an encrypted iso and decrypted files.
Even if it worked, you'd end up with a decrypted iso which would basically be a tarball to store the decrypted files. If an iso loader ever exists, it would have to be able to decrypt itself, so obtaining a decrypted iso is useful only for compression.
Hopefully one day, given the encrypted iso header and decrypted files (or decrypted iso), it should be possible to encrypt the files and rebuild the encrypted iso (convert from jailbreak to redump when given the encrypted iso header). And given the encrypted iso, be able to spit out the hash table in the header (or encrypted iso header for simplicity) and the decrypted iso.
(decrypt ps3 images), PS3DumpCheck
(check integrity), GetKey
(dump PS3 metadata), DatSplit
(split redump dats), GPack
(compress related images together)