I think it does elicit the feeling of disgust, but most people don't know it's happening. (Or downplay the risks - such claiming that it's only machines and not people watching).

It should also be completely illegal, but the justice system can't keep up with technology. Imagine you found out that your next door neighbor has drilled a hole through the wall and fed a camera into your house - what do you do? (Call the police, certainly). Is it really any different when the camera feed isn't a physical wire but done over the internet?