1)
The inability to instantly catch potentially well trained and prepared people on the run in a large capital, does not exclude a surveillance state.
2)
The revelations of the recent years has not garnered so much attention because of live tracking abilities, but because of the intelligence services almost incredible omnipresence, their ability to store and therefore retrieve data over many years and lastly the enormity, sophistication and agression of the whole endeavour.
You should know that if you have followed the debate even slightly.
3)
Plenty of people in the hacker and rights communities has pointed to the fact that the this grand effort will probably both be failing in catching terrorists with enough technical training and be used to target non-terrorist activity in the end, i.e. regular citizens.
Your argument is a classic straw-mans argument.
*added
4)
For me to grasp that technically minded individuals like yourself, is accusing the vast majority of the most intelligent people in the computer science community of crying wolf, and to be living in a fantasy after the ever increasing revelations over the past years - is very difficult.
Arguments like yours based on completely made up premises makes me hope people like you are either a paid shills, completely out of the loop or just an infinitely small minority.
We need to stand up for our rights more than ever today.