There is some information that really shouldn't on "live" storage until there is a specific request, and once it is "made live" it should be purged after a reasonable period of time if it isn't still being accessed.
For example, the feds could keep most records of former employees and very-sensitive records of current employees "offline" unless there is a specific need to have that record immediately available. If an employee or government agency needs immediate access to a routine, not-very-sensitive record such as hire- and termination-dates, tough - they will have to wait 5 minutes for the human being who keeps the "offline" data to retrieve it and put it "online." For more sensitive data, the wait may be longer.
"Offline" doesn't necessarily mean "on a disk, in a locked drawer." It could mean "on an isolated, secure system which only a small group of people have access to."
Bottom line:
If an adversary gets in and tries to do a wholesale data dump, either he's going to only get the stuff that happens to be online, or he's going to create a huge volume of data-retrieval requests which will get unwanted attention.