" Note to paragraphs (b)(2) and (b)(3) of this section: A printed book or other printed material setting forth encryption source code is not itself subject to the EAR (see Sec. 734.3(b)(2)). However, notwithstanding Sec. 734.3(b)(2), encryption source code in electronic form or media (e.g., computer diskette or CD ROM) remains subject to the EAR (see Sec. 734.3(b)(3))."
What this means is that the government is afraid that a ban on printed material would be considerably more difficult to uphold in court. It's far easier for them to argue that a floppy disk is a mechinism presenting a clear and present danger than it would be to argue the same for a book. So why don't we take this debate where the Government least wants to fight it--the realm of printed matter. Someone should start a crypto export business that takes crypto source code, prints it, and mails it overseas where someone else scans the source code and deliveres it in electronic form to a recipient. We could some important crypto source code (for example some of the IPv6 IPsec stuff being developed domestically), print it, export it (legally), scan it, and then distribute it overseas. If we repeat this process enough, it will first cause a lot of useful crypto software to be exported legally from the US. Then, when the govenrment wants to stop this, they will be forced to place a prior restraint on publication of printed technical pamphlets, which is exactly the restriction they don't want to be stuck defending.