> that everything they read and write should be surveilled 24/7 by teams of strangers, for their "own good"
Are actually two separate problems with our society.
Problem 1: denying privacy to children, various forms of helicopter parenting. This you've covered, and I agree this is our era's way of mistreating children.
Problem 2: "by team of strangers". as a Service. This is a much broader topic to cover it all here, but constrained to the context of data processing and children - social-wide, we're too eager to entrust sensitive matters to random strangers, giving them too much leeway, as if they weren't incentivized to abuse it in every way they can get away with.
People are having ridiculously inconsistent "trust functions" here. You wouldn't give this level of access to a small shop from your neighborhood that offered you a service, but you give it to a random tech startup from far away, just because the guy looks kind of creepy and the startup has a shiny web page. Even though a realistic threat model would suggest the former can be trusted way more than the latter (less incentives and less capability to screw you over, and they live near you). It's like most people can't internalize the lesson, even though they're being repeatedly screwed over by almost every business they interact with.
What pisses me off more, is when it's the other party that inserts some third parties into the process. When you have a kid attending a school, there's a degree of trust and responsibility shared between you and the school. But then the school outsources data management or remote learning to some random vendors, vendors who absolutely cannot be trusted. And as a parent, you can't do much about it.
One day in the future people will look back at our times and think about all of us and most of the market the way we today think about literal snake oil salesmen and people duped by them.