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You are right that, as steganography isn't really usable right now, you don't need to ban all communication to remove privacy in practice right now. But as governments adopt privacy-removing measures, the people will react devising privacy-enabling measures, and undetectable steganography might be possible in the future.

Let us remember that normal HTTP traffic follows a power-law, with relatively few sites getting the majority of the traffic, so there might be a way, if many of the high-traffic sites on the internet collaborate, of making "covert" traffic look just like "innocent" traffic.

that's simply not good enough to use, in a regime where the secret police can arrest you if they suspect you are trying to hide your traffic content

Even if we accept the premise of undetectable steganography, which is not possible by any possible means today, the arrests will continue to happen. However, I hope they will tend to happen less, as the large number of false-positive arrests would certainly cause high commotion in the general population.

* So, while I think it'd be very hard to remove the ability to send small amounts of text data, from the Internet, I think it'd be possible to make private communication unworkable, in practice, for most people.*

You are correct. Under the current situation, it'll be hard to make all your communication private under the restrictions imposed by, for instance, the Pakistani government, but dissidents don't need all communication to be private, and small amounts of text data might be all that's needed.



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