Naive indeed; on the surface it sounds utopian. But who decides what a crime is? That's where it quickly flips over into becoming a dystopia. I mean, for example homosexuality is still a crime punishable by death in a lot of places; if you cannot hide that, then a lot of people would be picked up.

Your last point is exactly poignant; it'll be lawmakers who end up above the law, above the control. Which makes it more like 1984 than a "borg" utopia.