They were more brutal because they substituted brutality in lieu of these sorts of technological innovations. They couldn't spy on everyone, so they had to crucify the few opponents they could definitively catch (or some sacrificial lambs, when they couldn't.)
Not to mention, it's much easier to overthrow a brutal dictator. Your government is killing your friends, drafting your family into the military, and sending your coworkers to work camps? Hell yeah, we won't stand for that! But if your government is just quietly watching, while your family is sitting at home, with food in their fridge - will you pick up a weapon to fight against that regime? Will your friends, family, neighbors?
You are right to point out that the majority of people are just comfortable enough, struggling to pay for debts they incurred in one way or another and generally have no incentive to fight totalitarian overreach of the state.
Unfortunately the institutions for the indoctrination of the young are set up in a way by now, that they are very good at producing hyper-focused well-working replaceable cogs for industry, together with their Ayn Rand reading, libertarian overlords in one nice package. They do all that, while setting you up for a life of indebted servitude, if you don't happen to choose a profession that requires you to be highly compliant with the current system to be successful.
So I guess if there is one thing to fix it would be education, a properly educated general public would hopefully be less apathetic and compliant than it is today. Technology has the potential to make education much more widely available and independent of having to assemble in one place and be subjected to abuse and brainwashing of authority figures.
Ok, go ahead and square that with the operation of the government today. I'm pretty confident you will find it impossible to construct a convincing argument.
Your suggestion of a democratization of spy programs is actually one of the premises of "The Circle", the book is meant to paint a dystopian future.