There will come a time when everything is illegal, and it will be left to the police or the government to decide who to prosecute.
This way we can have the illusion of living in a democracy but in fact we'll be under the paw of an arbitrary power. Of course the normal guy who doesn't stand out will never notice it, but those who bother the rich and powerful will be quickly and effectively silenced, in a completely legal way. It's already happening, for example with patents and copyright.
Wasn't this how Egypt was ruled for decades?
Isn't this a reality with illegal immigrants in Europe and the US? Everybody knows they exist, everybody pretends they don't, they don't have any rights or any political weight.
Has anybody watched Lars Von Trier's "Dogville"?