Privacy protects us against prejudice and discrimination predicated on what is kept private.
You say that stereotyping necessitates privacy, but in fact it is privacy that necessitates stereotyping. Consider the myth that Jews kill christian children to prepare their jewish dish – the Blood libel.
You might use common sense and say “that can’t possibly be true, pfft” or you might use common sense and say “Of course they would kill children, they’re jewish, duh.” But you wouldn’t know for certain unless you personally knew a Jewish person.
With privacy gone however, you could just look at a Jewish person preparing his food, and you would see for yourself that – hmm, maybe they really arent murdering christian children after all.
With privacy, the only thing you have to judge a random person is his appearances, his apparent actions, and your preconceptions. This forces you to use at least a little bit of stereotyping.
With privacy gone, you would be able to see the full spectrum of a person’s behavior, even at times where he might prefer not to be observed. Then this coupled with a rational mind allows you to come to a much more appropriate judgement about that person than you would have gotten if you based your judgement purely on preconceptions and experiences and stereotypes.
We need to stop acting as if everyone is out to get us. Persecution complex is delusional and not healthy.
I’ve lost track how many times people on political web forums have rejected my ideas, reason being “people are assholes, this will be abused”.