I always get confused in these threads because I cannot separate those who are worried about the privacy of their data from those who simply hate the government (or even the idea of government).
If you're trying to deploy a cryptosystem that relies on popularity to be really useful, then you'll need to get "average Joe" to buy into it, and I suspect the best way to do that is to point out all of the possible Big Brothers out there, not just rabble-rabble about the gubbmint alone.
Prosecuting for something that was legally done in the past is a whole different issue.
However, taking away someone's ability to make a living (see the Hollywood blacklist, etc.) is leverage that can be used to control behavior. The HUAC hearings were a big bad thing that was done. It wasn't as bad as slavery, for example, but it is something that happened very recently and I think we want to avoid.