I agree with you. Look at China's social credit system. (Does it solve anything or does it just push the equilibrium to a more intense "energy level", when a black market crops up for fake social identities, etc.?)

I think that advancing technological capabilities will eventually make it impossible to participate in "the system" (National, Global, whatever) without being subject to a pervasive surveillance (which is already happening.) So we will be forced into some sort of totalitarian system whether we like it or not by our own technology. So to me it seems like the real question is what kind of totalist system should be build?

To be sure we are confronting these questions already (cf. the Ashley Madison data breach and how it stirred up, uh, conversation around extramarital affairs.)