Some people don't mind being under surveillance if they believe it is for their own protection, even if it directly affects their privacy.
I found this out myself when I went public with Blizzard secretly watermarking all screenshots produced by the game World of Warcraft. Even though a lot of people agreed that Blizzard should have mentioned this in the Terms of Service, a large number of trolls, I mean, people, stated that they don't mind having their account data secretly watermarked if it helps Blizzard catch bad guys performing game hacks.
The problem was/is that the watermarked data were/are unencrypted, so anyone could have decoded them, thus continuously stalking uninformed gamers.
People are getting more and more used to the idea that personal data gathering is used for their own protection/benefit, without realizing that, be it private companies or government agencies, the same rule always applies: "You will be treated as guilty, just in case you ever decide to actually break bad".
PS: Techdirt didn't even mention the Blizzard watermark issue. Why Mike, why? :P