Well, as a software developer, I don't mind my work being monitored as long as I am unaware that the employer is monitoring me. If I know the employer is monitoring me I will become self-conscious and the employer would then, in essence, destroy my productivity. However, like writers, coders think about what they are going to write next and web search stuff a lot more than they code so monitoring a developer in real time would probably be pretty boring - and employers would probably be dismayed at how much they pay us to google/cut/paste/modify/test.

In all seriousness though the situation is that, privacy concerns be damned, if valuable data can be collected it will be collected. Absent laws protecting worker privacy, employers will collect as much information about you as they can and use it in whatever way the deem necessary. It's a sad and unfortunate truth.