To reply to csallen's question about why being watched is evil - these answers are in part elsewhere in the discussion that's gone on about my comment already, but bear repeating.
1) It's not being watched that's evil. It's watching - my argument is that being watched consistently has negative effects on a person.
2) I haven't said that collecting data is evil - by all means collect data. Data about a specific person or tied to a specific person on the other hand, is a mode of control of a person, whether or not there is intent to control the person with the data.
This fact, while not empirical, is reflected in the literature about humanity. Foucault, as I already mentioned, wrote extensively about the modes of security that a nation employs (note that security is a technical term that Foucault has defined to mean the ways that an entity in power may maintain that power, roughly). One such way is surveillance of the citizenry. Another is through spectacle (drawing and quartering). He argues that as a society, we've switched to a disciple/rehabilitation focused system of control. If you want to read more on this, see his work "Discipline and Punish".
Even fiction authors have found it fit to point out the control one possesses over another when they know things about someone. In "The Wizard of Earthsea" series, for example, knowing someone or something's name gives you power over it - and not just because of a mystical quality to a name. By the time the series is over, LeGuin has made her point that the name of a thing allows you to control it in part; at least make requests or commands of it, whereas when you did not know it's name you had no such power.
I could write a dissertation on this (and in fact, I did), but there's no point. I just figured that a question deserved a response. I'd love to hear if some disagree with me on this and why. Always love a discussion on Foucault.