Wouldn't something like this be easier to encrypt for transmission than normal video? Plus, in the case it comes up, "that ascii representation doesn't look anything like me and you can't prove it was me."
I like it.
I like it.
I wouldn't rely on terrible quality video for plausible deniability but if you want to there are of course many ways to make your webcam feed shitty looking.
Note you can tunnel arbitrary ports in ssh for data if that's what you're thinking of.