Great points. It definitely seems to me that those two are fundamentally opposites. Suppose we champion (1), then with perfect privacy gives a lot of leeway for criminals to commit crimes such as those you stated and more without being able to detect that they did them.

However, without perfect privacy, every world citizen would be subjected to such monitoring, and we'll basically be exactly what 1984 is, with the metaphorical "telescreen" functionality spread across pretty much every device that's connected to a network.