This can already be done by someone who truly wants to keep an eye on you, only it takes more manpower (well, detective power).

This is simply the same trend as ATMs replacing (some) bank tellers many years ago.

Will it be easier to perform and abuse mass surveillance? Sure. Will people with something important to hide still wear disguises? I'd bet yes.

My stance is that we can't fight progress, but we can start fighting the people bent on abusing the powers that progress bring. Identifying them is another issue (perhaps some form of facial recognition? :)