Ok, and if trafficking in counterfeit goods became illegal tomorrow, would you give it up? Oops, it already is. Please present your ID card and licenses for all your watches. Member of any religious groups? We know you are, and we know that groups you have ties to are involved in terrorism. You are what the UK calls "Potential Terrorist", much like anyone with a 70s punk collection.
It's not about Big Brother watching you, it's about Civil Servants with personal agendas having access to Big Brother's video tapes. One mad lefty/fascist civil servant (or agent of the government, gas board, library system, etc.) with a personal agenda can access any information they desire and profile the population any way they want.
You don't have to have a guilty conscience to know this doesn't really appear to have any positive benefit for the cost.