Interesting point. Also, it brings up a very good point referenced in the Little Brother novel: what happens when a government organization puts out its own version of ParanoidLinux in an attempt to snare those who think they need it?
It’s not the “there are already too many distributions” argument that is unsettling. It is more that the project feels a like a waste of human resources — why is it necessary to put the applications and services designed to protect anonymity, to encrypt files, to make the user nameless and faceless, all together, in one distribution? Let’s think in a truly paranoid manner. Wouldn’t it be far easier for a nefarious government organization to target that distribution’s repositories, mirror that singular distribution’s disk images with files of its own design, and leave every last one of that distribution’s users in the great wide open? It would take more effort, it would seem, for a despotic goverment to hit every last repository of every last distribution with a bogus security application.