This chilling effect is the exact purpose, the true goal. When every terrorist and criminal can be instantly, systematically caught in the all-encompassing web of a total police state, then so can anybody else. And that means you always have to watch what you say, weigh the consequences of protest, think twice about associating with fringe ideas or people.
Terrorists are a conveniently indefensible target, but the measures against them are nonetheless a threat toward everybody else. This Can Happen To You Too. But it's okay, you have nothing to fear, just avoid being classed as a dissident. Shut up, keep your head down, and toe the line.
And I did not speak out
Because I was not a Communist
Then they came for the Socialists
And I did not speak out
Because I was not a Socialist
Then they came for the trade unionists
And I did not speak out
Because I was not a trade unionist
Then they came for the Jews
And I did not speak out
Because I was not a Jew
Then they came for me
And there was no one left
To speak out for me
Martin Niemoller (https://en.wikipedia.org/wiki/First_they_came_...)
This is more difficult than it may sound. Guilt by association is alive and well in most governments, and you don't always get to choose who you are associated with.