I'm old enough to realize they already have quite a bit. As a child, it was safest for a gay person to stay in the closet, now states are legalizing gay marriage. The idea that someone can be openly gay alone is a huge change. Even celebrities used to hide it, now they can't because someone is sure to catch a photo of them out with someone or at a club.
The same is true for drug use. Michael Phelps was caught on camera with a pipe, but people just shrugged and moved on.
Granted, this isn't nearly the scandal it may once have been, nor is it considered nearly as shameful as in the past, so the social mores are definitely changing. But that photograph definitely had a negative impact on his life.
A) The transitions aren't always smooth, and the people whose privacy is violated are sometimes sacrificed in the years-long process of mainstreaming whatever "shameful" thing they did.
B) We're a hypocritical lot, so there will probably always be things that we all do and yet still shame others for doing. So the common knowledge that everyone does a particular thing won't be enough to shield you from the shame of being exposed as a doer of that thing.
At this point I'm tempted to just say "go watch Gattaca" and leave the rest as an exercise for the reader.
Privacy evolved as a useful solution to many social problems. When that solution is ripped away, the problems will remain.
See http://en.wikipedia.org/wiki/The_Transparent_Society http://books.google.com/books?id=hsyA7hmDEqYC http://www.davidbrin.com/transparent.htm
Is it a totally bad thing? (or rather is the "sacrifice" of a generation worth considering?)
Personally, I phrase the debate as Security and Privacy versus the Government.
The government can gather your information covertly, can obtain data from multiple companies using legal means unavailable to corporations, and typically do so with the goal of charging one with a crime.
