It's pretty easy to make data really hard to read; it's pretty hard to be 100% sure of eliminating the data however. It's just like every other piece of evidence. It's pretty easy to make it tough to tell forensically what happened, it's pretty damn hard to make it impossible.
Honestly unless your a practicing pedophile, an international terrorist, or a hacker working for a foreign power against the Chinese or US government. (or doing anything at all on the internet in China) The NSA probably doesn't give a rats ass about you.
That's not to say that there isn't horrible invasion of privacy, but right now it's only that. No one is going to arrest average Joe-down-the-street for being into feet YET and these sorts of measures are completely unnessesary.
It'd be like wearing a hat, coveralls, and rubber gloves before jaywalking.
<EDIT>
Couldn't think of a better example than jaywalking, yes porn is legal, but you get the idea.