Shouldn't it be a privilege to be assimilated into the collective? After all, one alone cannot attain perfection.
This reply is going to be somewhat generic and possibly preachy. I do think, however, that most of the discussion so far is somewhat specific and doesn't quite tackle the big picture.
In short - I think in this case resistance is futile (okay, enough Borg references...). As I personally see it, we're starting the squabble at the wrong end of the stick whereas we've already handed the bad end of it to the devil - be it to corporations, the government or both.
While it's literally impossible to draw a line where civil liberties and one's right to privacy end, and a corporation's (ab)use of personal data begins, I personally am trying to keep an open mind and rather try to look into the future than get bogged down in the past or the present. The types of services social networks and search engines provide right now are simply not possible without an exhaustive database. To me it's not even a question of good or bad as to whether such (a) database(s) exist(s). What is in question here, however, is intent. Given the fact that intent is a geographically and socially relative value, the real problem hence boils down to good old fear and paranoia.
A silly example - back in the day
The Net told a story (I'm not even sure if it would've been just theory, even back then) of how a person's life can be ruined in seconds by having access to a handful of fields stored in a database. That was in 1995, so it's not like this kind of fear is a new thing.
True enough, the government might be able to erase your identity with a single click and a corporation might be able to buy the same with enough money, but the truth is that this kind of risk only arises because we enjoy and are unwilling to give up the benefits it provides. These benefits might be better in some countries and worse in others, but in the end the ship has sailed for pretty much all of us: we're all online. Kids nowadays start mirroring their social lives on the web at the age of 3 or 4; the sad truth here being that this kind of unhindered behavior is henceforth forever ingrained in us and it isn't going to change. The information isn't going anywhere. Ever*. We've already been assimilated. I feel sorry for every country where this information is being used to manipulate and persecute people, but that remains an inevitability as long as humanity as a whole doesn't start going with the times.
Hodgman has mentioned repeatedly on these boards that with the advent of massively parallel processing, in order to stick with the times, our only hope as software engineers is to rethink the entire programming paradigm and let go of many, if not most, of the increasingly antiquated methodologies and conventions used today, in favor of a completely new and in many cases alien paradigm. Well, the thing is - the same applies to the whole of society. People have been rebelling and talking out against governments and leaders since the dawn of time and this kind of behavior has been crucial in shaping a more liberal and democratic world. However - do we want to eventually become a
Type I civilization? Well, globalization of information is a part of it - take it or leave it. No one said growing up wouldn't be painful.
If I had to list my fears on a realistic scale in terms of breach of personal information, then I'd go with:
3) the FBI (or any government agency) getting information from a corporation
2) a 3rd party buying or stealing information from a corporation with malicious intent (eg not just to spam my mailbox)
1) a 3rd party buying or stealing information from a government agency with any intent
Albeit the line between the two might be thin, there's a difference between misplaced malicious intent (aka "collateral damage") and illicit malicious intent (aka "a crime"). As a number of folks here have mentioned, belonging to a database with two billion other people doesn't usually solicit singling out unless there really is good reason.
When it does happen, however, these people will sadly be nothing more than collateral damage. If you think being part of collateral damage is "outrageous", all you have to do is go back to any war ever fought on this here planet and rethink.
To me personally, this kind of paranoia is not worth losing my brain cells over.
* unless there is an apocalypse of some sort. A really thorough one.