The interesting bit is that the general public increasing their adoption of better security practices to make them invisible will benefit the pedophiles and terrorist already in hiding because their choice to hide/encrypt will no longer result in them sticking out from the masses.

I think the idea was to use a DDoS-like farm of hacked machined to constantly send random messages and packets meant to trip their detection systems to random other IPs, thereby increasing the sheer amount of noise surveillance authorities have to deal with and false-positive "suspects" (the owners of all those hacked machines).

Naturally, that still doesn't solve any other problems...