Where you say "really shows the failures of a police state." It's a great success, the greatest actually. The people who fail to enforce anything against the police are the same people who need them to act as the tip of their spear. The purpose isn't everyone compliance - just the compliance of those with the potential to change things. Think FBI and MLK, or Aaron Swartz. It's like spear fishing vs mass spam, tracking the individual agents of change and their social network vs fire hoses and dogs at protests.

This hypothetical also assumes that the surveillance state would be competent, rather than merely oppressive. I think at this point we into a vanishingly small set of possible worlds.