I think it was simply a matter of allowing someone who'd done nothing illegal some privacy. As Hugh Sloan noted in the film, he'd had trouble securing a job in the private sector because his name had been in the papers - and he'd committed no crimes. Judy Hoback may have also been in the market for a job following the Watergate affair, and it wouldn't surprise me to learn it was her wish not to have her identity spotlighted in the media. When All The President's Men was published in 1974, Woodward and Bernstein only referred to her as "The Bookkeeper" - and since the film was released a brief two years later, I'm sure Redford (as the film's producer) also wanted to honor her desire for privacy.
It's interesting to note that many years later, Woodward considered Hoback an even more crucial source then Deep Throat...
http://www.dailymail.co.uk/news/article-2160868/Watergate-scandal-The- women-helped-Bob-Woodward-Carl-Bernstein-topple-Nixon.html
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