My problem with this scenario is the same as with gun ownership: it can work, if the access to technology is more or less equal, but too much inequality in the distribution is undemocratic, causes too much imbalance in power. Like when a few economically and physically capable persons can hoard quality weapons while most of the public is left with grandpa's shotgun. In the theoretical situation, when armed citizens resist something they consider tyranny, the outcome of the struggle depends on who is better armed/prepared for fight, not who is right.
All that said, that surveillance by citizens would be better, than the situation of today, where only businesses and authorities have their cameras in public places.