Actually, it's worse than that. What will undoubtedly affect most people is not the power imbalance between the individual and the government as a whole, but the tremendous power imbalance between an individual and the lowest tier public worker that has access to that information. When your local policeman will be browsing your daughter's naked photos (that she took in the shower with her cell phone) while contemplating which would be better to coerce her into sex, her confession about cheating in French class, smoking a joint once a year ago, or going on a date with two different people without them knowing it; and when you find out, and the same person will threaten you with being arrested for anything he could make up he saw in the surveillance, put you on a watch list, destroy your life.... that's when you will realize how far the power separation has gone.
Take it from someone who was brought up in the Soviet Union - even the lowliest civil servant had power, and exercised it. There was no action without bribery, and there was not even a concept of freedom... not because of power coming from the top down, but because the system was so skewed at a traffic cop could pull you over, rob you, rape your wife, then kill you both, and if anyone witnessed it, they'd keep their mouth shut.
If you give someone absolute access to your information (even forgetting the concept that the latter will likely mean absolute access to making stuff up), you given them absolute power over you.