> The point is that hypocrisy would eventually cause a change, but there would be a period where things would work the way that you describe.

That may be possible, but it's also possible that total surveillance would result in a permanent entrenchement of whoever manages to gain (or maintain) power through the transition. It's very hard for a competing ideology to rise in prominence if it's possible to detect and crush every individual who starts to disagree, before they can even communicate it to anyone else. I think it's likely that with total surveillance we'd soon see the rise of rapid automated enforcement, which would be a incredible impediment to any attempt at changing the status quo.