@Rotron Thank you for your insights. I don't know how much "sport diplomacy" continues today: I went in the summer of 2012, less than one year after Kim Jong Il came to power...perhaps there was a desire to show more open-ness to the West. That has, of course, changed.
And yes, we were warned that we would be be watched all the time. Two of my team-mates were gay (and a couple), and they knew to not show any affection for each other, even in the "privacy" of their twin-bed hotel room.
One of my favourite photos from the trip was from the hotel room: There was a small table between the two beds with a lamp, a single-line telephone that would go only to the reception desk, and a clock radio. I was curious to pull the table away from the wall and see what I found:
The phone, lamp, and clock didn't need that many wires. We assumed that there were microphones built into the table, but we didn't want to test that theory by saying anything illegal.