What the powers that be don't seem to realize is the wisdom in Leia's line in A New Hope: "the more you tighten your grip, the more systems will slip through your fingers". They will drive people underground and thereby strongly increase both the threat to their regime, and the amount of resources they'll need to put in to tracking millions of people in high-intensity ways.
It's not a sustainable model.
So yeah, it's massively concerning, no doubt. At the same time, I'm optimistic that they are, as tyrants always do, overcompensating.