That's a problem too. Right now people with something to hide don't stand out amidst a background of similar encryption. If they suddenly have to switch to something relatively more exotic, that alone would be a coup for people in signals intelligence, don't you think?
Yeah definitely. This is currently the problem with ToR.
The people that need the protection that ToR provides paint a target on their backs because there isn't enough ToR usage for them to be inconspicuous. Which is sad.. because for all of the bad usage of ToR there are people that depend on it to preserve free speech and any weakening of it could easily get them imprisoned or in many cases executed.
It doesn't have to look "exotic" at all: Sam just sends Joe a file in base 64. But that is how all the multimedia content is sent in e-mail now. Until dig into what Sam sent, it looks like just another JPG file sent in e-mail. But translate it from base 64 and give it to an image program and will discover that the file is not a JPG file. Or a PNG, BMP, MP3, WAV, EXE etc. file either. But about have to translate from base 64 to conclude this.