In a traditional "watch list", those listed can expect to automatically encounter more scrutiny or problems from government officials in some kinds of interaction, like trying to board a plane, trying to enter the country, or maybe interacting with law enforcement or trying to file taxes. The XKS rules have in common with this that some people get more and different attention than others (which I can readily agree implicates their rights), but maybe in a particular moment as part of an analyst's activity, rather than in a way associated permanently with their identities.
While I certainly don't think anyone should have the power to perform searches like these, I feel like different senses of "list" are being conflated here, especially in the grandparent post's notion of "several watchlists". (I've been a part of the Tor community for a long time and have never heard of a report of anybody receiving adverse treatment from a government that could be attributed to Tor use this way... though it's certainly plausible that Tor users do get singled out in various ways by various governments for further spying.)
Name one "watch list" that you get put on for using Tor. That's ridiculous. Even with Rule 41 there aren't any additional watch lists. It's this exact fear and unfounded self censorship that destroys a society quicker than any actual oppressive regime could.