Remember the Boston bombings? I sure do. The FBI had a line up on them before the fact, then were too slow/stupid/whatever to prevent the bombs from going off. To repeat: they had information in hand as a result of surveillance, then still fumbled the ball.
At the core of these "security vs liberty" debates is usually three assumptions which are fallacies:
1. Complete security is possible, if only we give up our liberties (it isn't, look at violence in prison populations)
2. Complete security is desirable, so we should give up our liberties (it isn't, because we'd be in prison)
3. Giving up our liberties will have no unintended consequences (it does, involving willingness to put new ideas out)