Thee is a change to
western society that has been happening, but it is not the zero-privacy dystopia you are advocating for. The west is rather quickly transforming from a guilt bait's social norms from the guilt society[1] into a face (or shame) society[2].
> People will stop lying
I don't[3]. I already have a hard enough time remembering everything, and lies would only add to the crap I have to remember. Please don't assume everybody lies OR that "not lying" is anything close to the same set as "no privacy". Just because I tell the truth doesn't mean I don't maintain privacy for a variety of reasons.
The zero-privacy society you are advocating for has real world consequences to thing like racism, LGBT issues, and the like. Assuming that people wouldn't behave in these antisocial ways is delusional at best, because it presupposes that people act anywhere close to rationally. Wore, you have to remember that modern technology means that anything recorded sticks around ~forever. You are advocating for a society where people dig up ancient skeletons in someone's close just because they can. This is not hypothetical - an obvious example are the people in ?chan culture where bored teenagers SWAT[4] people "for the lulz"[5] It is laughable to think that that this kind of behavior will magically go away with more cameras.
In a society where every mistake you have ever made is recorded and available for critique is a society with extreme risk-avoidance (ass-covering) policies. The closet thing to this totally-open society we have today are the extreme forms of Calvinism (xian strict predestination) and the perverse incentive it creates to cover up and ignore problems.
Above all that, though, is the effect a lack of privacy has on experimentation and innovation: when people know they are being watched, they tend to not take risks or do things that make them stand out too much. This isn't just a Human behavior, either, as most mammals have similar reactions. You seem to see this effect as a good thing, while ignoring that private experimentation is a key part of how children grow and learn. Even into adulthood a lack of privacy raise stress and other mental health problems.
In a few hundred years, if society has learned to handle race, sexuality, poverty, mental health, and many of the other problems that cause the animosity, hatred, and violence we see today, we might be able to consider a are more open society. Until that time, an "open" society has real consequences for a lot of people. If you want to make such a future happen faster, I suggest you spend your efforts on actually trying to fix some of these problems, instead of assuming that everybody lives in a similar situation to your so you can pretend that hatred, racism, sexism, are just "brainwashing" that will magically go away if we could just get a camera into every bedroom.
[1] https://en.wikipedia.org/wiki/Guilt_society
[2] https://en.wikipedia.org/wiki/Shame_society
[3] I will add that while I have never had to test the extreme limits of "not lying", I have walked away from a job over a "lie or street" situation ( http://c2.com/cgi/wiki?LieOrStreet ).
[4] https://www.youtube.com/watch?v=TiW-BVPCbZk
[5] http://knowyourmeme.com/memes/i-did-it-for-the-lulz