A situation where everybody is able to watch everybody else is an utopia (or dystopia, depends on your point of view). I don't really think it is possible and I am not sure I would like it if it is.
Also let me clarify that I am not saying that Google has an evil plan to become a Big Brother and the aforementioned quote is not about that. My questions are (feel free to replace Google with any other company that collects information or even the government): A. How many googlers have access to my information? B. Am I sure that all those who have access are trustworthy? C. Am I sure that some ex-googler will not leak a big chunk of data just to get back at the company? And answers are always: A. I don't know; B. No; C No.
It would certainly be possible to have a situation where everybody is able to watch everybody else. Would that also be evil? Or is it just the asymmetry of access to information that is evil in your view?