Scroogled (2007)
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Yes, it's scary if an authoritarian regime with something against you knows everything you've ever done in your life. But the solution is not to stop living your life, it's to prevent the government from throwing away the Constitution.
That much valuable information attracts not only the government, but also the criminally motivated and those seeking power over others. All of it's scary – and we're willingly going along with it, at the moment, because it's useful for us, in the short-run.
Also, that methodology means that data is only centralized during or after an investigation and not en masse, before one – making it less likely that a random person's data will be available for theft via a hack, etc.
Data mining is different because it can be used against everyone at the same time, and because it is completely invisible. This has never been possible in the past, at least not at this scale.
On the other hand, this alarmism is just as absurd as it is on the ACLU's "zOMG pizza!" flash presentation.
"It's important government doesn't get their hands on private information"
Those don't go together. Government will get their hands on this stuff if it's stored by massive corps that collaborate with the government. Or, even if the corps don't collaborate, the ISPs will. The USA be settin' up Gigamons everywhere.
My favorite line:
"Give it five years, [Google]’ll know how many turds were in the bowl before you flushed"