Won't let you use the Kinect? Paranoid.
They reported a CIA officials stated interest in using consumer devices for intelligence gathering. Their analysis of that was to presume it would be abused.
It may not be deep reporting or analysis, but your suggestion that they should be fined would be more in line with how Russia runs things than the media culture of the West.
[0] http://readersupportednews.org/opinion2/276-74/5123-fox-news...
Fox News deliberately aired lies about the contents of milk in the US. They went to court to defend their right to lie.
So yes, I do think it is "silly fearmongering" to suggest that they'll continue to develop and improve their system's capabilities in the specific way you're suggesting.
Why would they not exploit a capability that they have indicated interest in exploiting given that they've already crossed the line into illegally collecting as much private information as they can?
They sold the AT&T facilitated phone tapping as something they would do selectively, with FISA warrants. It turns out they were conducting mass collection of conversations and conversation-related data without warrants. Why would they show restraint with the ability to listen through consumer devices? Talking about scenarios that are likely to happen isn't "fearmongering" it's rational vigilance given where we're at.
It's "silly fearmongering" as long as you have no evidence that they've done such a thing or are attempting to do such a thing.
Preventing government abuses means paying attention to not just what they've already proven to have done, but also attempting to discourage them from taking likely next steps.