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As I said, and as you quoted, it can be monitored, whereas an intelligently written encryption program cannot. Thus, if your mud has rules against certain types of vocabulary, likely of a profane nature, they can be enforced on private channels (assuming you have no issues with monitoring "private" channels).
Of course, it's a bit of an... academic distinction. First, people who are voluntarily using the encryption program probably don't care what's being said. Second, monitoring private channels is normally not done anyways. Third, does it matter <i>that</i> much?
So, yes, while there is a difference, it's not always going to be one that matters. However, given that the potential for control is <i>there</i>, it is a somewhat better solution (that and it moves the spammage).
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