A system in which some authoritarian power literally watches your every move and subjects you to analysis, legal implications, social standing, and wherein citizens have no power or recourse to alter that system ... is fairly objectively 'dystopian'.
If this were strictly limited to 'matching terrorists and murderers faces out in public' - then I think some kind of argument could be made. But this goes way, way beyond that.
You know what would be better? A system where people are raised to be conscientious, responsible and fair - so you don't need to monitor them all day and night. It works pretty well in many places.
Even if you put all the privacy and social implications aside - I really don't think anyone in my neighbourhood would think that all of this would actually create a more peaceful neighbourhood or create better social outcomes at all. So it's like 'all the dystopian stuff' without really a lot of upside.