Hmm. That sounds really weaselly to me. Like, stretching it. But that’s probably because I’m viewing Steel/Water as types of conflict, rather than techniques you use during a conflict, and I don’t know which the book is referring to.
Like, if I draw a sword on you and you draw a sword back, you’re responding to Steel with Steel, because swordfighting (no matter what style of swordfighting) is a Steel sort of conflict.
What I’d see as a valid Water response: “I supplicate myself, calling on their guilt and compassion to spare me”. To me, that’s what indirect conflict looks like–not actively engaging them. Doubly so if this is done for the benefit of an audience, where the contest is “can I strike you down without losing face?”