One of the biggest is the destruction of creativity. When people know that their actions are under constant surveillance it creates an enormous cognitive load. They have to constantly evaluate everything they do as to how it might appear to a critical observer. The end result is that people will simply stop doing anything that might have a social risk associated with it.
A panopticon society will be a dull, stagnant and repressed society. Think of every little backwards town where everybody knows everybody's business and anyone who steps out of line is ostracized. That is what our entire society will turn into with total surveillance.