> Privacy and encryption is important for democracy, we say, because it's important that people be able to coordinate in order to resist an increasingly totalitarian government.

Also, too much privacy can also support defection rather than coordination. The government may look at this and see something else: that in the arguably much more likely scenario criminals will use encryption to defect against the social order. Enough untraceable trade and then when there's a nuclear or biological attack you may think about reconsidering just how much privacy do you want general population to have.

I don't want to defend or support the surveillance state here, just pointing out that, especially from government's point of view, them turning totalitarian seems much less likely than criminals and terrorists doing their crime and terror things.