Talking about the content of what they might know is a distraction of the real problem. If there is too much power and information with one organization (the goverment in this case) bad things happen to individuals that go against these organizations.

This a problem that's not exclusive to police states, it also affect western democracies and corporations. For the US right now the individuals at stake are the ones that go against and or scare the status quo: whisteblowers, hackers, political activists, etc.

If you want a concrete example the post on HN from just a few hours ago is a great one: https://www.commondreams.org/view/2013/05/15-7