I don't think the government wants to know about your private family life neither. I mean, it's edgy to imagine that the government has a secret file on all of us. But they don't do they? It's just very silly nonsense.
That's highly impratical. NSA's budget isn't infinite and they have many other operations that would also require funding.
* they collect bulk data, then develop the tools to sort them out
No it actually doesn't and shouldn't. It would create a tyranny of the majority.
It took less than 200 years for it to devolve into a full-blown plutocracy.