I see that as the long-term-goal: it's quite a cliche term by now, but they are really creating sheeple, slowly breeding out the rebelliousness and independent thought to be replaced by docile, obedient worshippers of the government.
It's the one reason why I have hope that Chinese world domination attempts will fall flat. They will just be out thought eventually if they continue down this road.
I dunno, the culture also has a strong basis of surface following the rules while getting around them in every way you can, typically way beyond a typical westerner.
I think people shouldn't underestimate the way people counter react to rules they do not like or agree with on some level.