Just to play Devil's advocate a bit here, but isn't this exactly the way the system is supposed to work?
No. Period, full stop. Very few think the "system" should gather as much data as possible on as many people as possible. I don't know the U.K. laws, but in the U.S., the authorities aren't allowed to search out whatever they want about you without probable cause and/or warrants.
Having information on someone is what puts them in the "no security interest" category, rather than the "unknown" category. In reviewing that information, crimes like copyright infringement may be discovered, and that puts the person in a different category entirely
So, we should hoover up all the information we can about everyone, so we can be sure we know who would be "of interest"? Cardinal Richelieu would be delighted.
Now, if understand the typical Slashdotter's perspective, the government shouldn't be allowed to gather information on people of "no security interest", but they can't know who that is without gathering information. Naturally, then, we will lobby to prohibit all gathering of information, and when successful, we will mock the government's eventual failure to find people who are of "security interest" with their then-nonexistent capabilities.
Why, yes, most of us on Slashdot use a silly fake paradox to conclude that no investigative effort should ever gather any information. Idiot.
The real question is are you a troll or do you just come from a black and white world?