I build extensions using ssh access to the root account on a Micro Core virtual machine. I use scp (over ssh) to transfer scripts to the virtual machine. I use ssh to run those scripts as root and to monitor the results. I use scp to bring the packaged extensions back to the host machine.
The script in the original message demonstrates that the dropbear "-w" option does not prevent root access over ssh if user tc has access over ssh. With that script, someone can convert ssh access as user tc into ssh access as root. Alternatively, someone who has ssh access as user tc can install openssh, whose configuration does not prohibit root access.
I use remastered Micro Core ISOs that restrict all ssh access to public key authentication, so this is really not a big issue to me. It just seems to me that the dropbear "-w" option really serves no purpose given the current Tiny Core security model.