Having said that, I don't know if that whole Edward Said angle is really that necessary. W-G as a political statement comes across as a novelty at best- never really heard of that one (btw, the inventor of pinyin has fallen afoul of the party as it appears, so make out of that what you want). After all, of Western scholarly literature until the 1980s/90s predominantly used Wade-Giles- and quite a few of the authors had Chinese roots as well. At one point you get used to it. Having said that, pinyin is way easier on the eyes. If you want phonetical anyway, go IPA.
More as a cultural statement rather than a political, sorry if that wasn't clear, though the two often intersect.
The Edward Said angle really does work in terms of cultural representation though.
I find a lot of Western works (in terms of fiction, games, etc.) that use/reference Wade-Giles or its spellings are pretty backwards in terms of how they depict Chinese people,
from Limehouse Nights and Fu Manchu all the way to some truly awful Rifts: China books
(although Imp might be interested in the depictions of the super-advanced, one of the last hopes of humanity, Communist underground city in the books).
Anyways, it's also mostly in defense of the principle that like stated above, the Romanization should reflect local preference. You know, since it's a two-way street.
As for Chinese users of Wade-Giles, I don't see it as a political thing, but more as a period thing, complete with brown suits, old fashioned round glasses and all.
Though you could argue the case for it for Taiwan pre-Pinyin change.
About Zhou Youguang, that sucks imo.
I don't really agree with most of his opinions and expectations but I respect at least one of them
(that China is culturally lagging, though my interpretation of that is probably a lot different than his)
and feel that China's had more than enough important figures that were supremely talented in life, hampered by politics,
and then rehabilitated in terms of reputation in another generation.
I can see some parallels with Noam Chomsky too.