The lack of observation has a clear effect on thoughts and behavior. There is even an English saying “when the cat is away, the mice will play”. I think that there is no such thing as " freedom of speech" or “freedom of assembly”, if a malicious actor is silent notes taking at all times.
And because harvested data goes to the rich, or the cops who care about convictions more than the truth it is a reasonable assumption in my threat model that data observation is malicious observation.
Also from a citizen development perspecrive, if your citizens are always watched, then they never develop the " moral muscle" and the only morality remains in the hands of those with the power to observe and enforce their will.
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