Our historical models of losing privacy emphasise the state at the centre of the panoptican observing all citizens while remaining hidden themselves. Correctly implemented, technological tracking of services and employees and bureaucrats has the potential to be much more like true transparency, with everyone having a more accurate picture of everyone else's history of behaviour.
Whether you think that this is desirable or not is really about values and preferences, not an objective question. But I think it is objectively likely that a society like this would enjoy a competitive advantage in terms of organising its economy and society.