When I try the following under gnupg 2.1.3 with arch linux:
$ gpg --homedir <gpg-dir> --batch --pinentry-mode=loopback --passphrase-file
<passfile> --decrypt myfile.gpg
I get the following error:
gpg: setting pinentry mode 'loopback' failed: Not supported
...
gpg: decryption failed: No secret key
Is the gnupg version of arch just missing some compile-time flag to support
--passphrase-file without manual pinentry? If this is the case, I could report
this back to the arch maintainer to get it fixed downstream.
Or is there still some work to be done on gnupg?