I have a very hard time picturing how someone could have freedom without privacy.
I agree, and it's specifically because everything is hierarchical. If you have more power you are free to be more private than everyone else, and know more about everyone else than they know about you. The ideal transparent society can't exist without a level playing field, so it's not going to happen.
I quite like this recommendation and if it comes to pass as Brin envisioned it where everyone is a watcher then it'll be a Good Thing. I hope that's where we're headed.
(Preferably get it from your local library, if you still have one, or a small independent bookseller.)