"Get circumvention at all wrong and you achieve the opposite of what the tool is intended for: you put a big red flag on people breaking their local laws. ... Don't build circumvention tools."
That attitude is so wrongheaded I hardly know where to begin.
First of all, anyone who uses something like TOR in China has already put a huge (and very very obvious) red flag on their communications stream.
So, if those people are going to be trying to break through the firewall anyway, why should't they do so with the best tools available? Why shouldn't they try to hide their communication in a stream of innocuous traffic rather than obviously red-flagging it?
And why shouldn't concerned programmers write tools to make the hiding of such information more effective?
Look, many people are going to try to communicate even when they're forbidden from doing so, and they're going to try to circumvent censorship. So we can either try to make it easier for them, or harder. I'm on the side of making it easier.
Sure, some people are going to get caught despite using steganographic software. But I'm willing to bet a lot fewer of them will get caught than using bare encryption systems like TOR.