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Re:"What our top spy doesn't get", I completely agree with you and have been making the same point since the TSA screening started. However, I just read your article about RealID, and though I agree with your thesis, I would argue it is an Incremental step to better Law Enforcement and counter-intuitively better privacy. As you mentioned there are a wide number of divergent systems tracking our information. One jurisdiction as no connection with another's. This means a criminal in one county, has to simply move to a new county for complete anonymity. I agree that RealID poses a false goal much like the TSA, as in the lines mean you are safe, the card means you are safe. But considering there are currently hundreds of forms of State ID in the US, it makes the ability to forge one form that much easier. A national ID system, IF properly implemented could provide much needed transparency and protection to how our personal information is collected and stored [it is now, but we know very little of all the different processes, rules, regs, etc.]. For one, it could allow integration with Voting registry, instantly enabling someone to be registered upon issue, to vote [we have a cannot drink until 21 stamp, why not a cannot vote until 18 message embedded in the chip].
Hillary Rodham senior thesis - Wikipedia
Speaking of the perceived differences between "security" vs. "privacy", check out this blog post about the Smugmug photo storage service. The CEO of Smugmug attempts a slice & dice. Whew.