You forgot the part that as an individual I am practically invisible to the institution, and it would take a mob of mes to attract Sauron's eye.
It can happen to you too. Even if you think you're a no one.
(your statement isn't true when it comes to virtual + automated surveillance)
Automated surveillance is millions of eyes that track, record, and calculate a billion times faster than the human eye.
Additionally, you’re making the fair strong assumption that the state has to expend more than a nominal amount of resources to crush you, when is it becoming easier and easier to do so without significant effort.