Might as well get on with it. It is inevitable that the politicians will give the 1984 solution a try.
The Internet, however is not without it's resources to combat the loss of privacy. PGP will grow like a weed. Encryption in general will become pervasive. It may be hard (but maybe not impossible) to hide where you go but you will be able to hide the transactions. And then, of course, they will try to outlaw encryption. Then we will all be criminals.
Back to the good old days of Al Gore I guess -- clipper chip, key escrow, loads of fun. I know I refused to vote for Gore for a reason, but now I'm wondering why since things I feared under him are coming true anyway.
And check out the thread Phone Taps Just Got Impossible where some FReepers are apparently mad at the hindered snooping ability of the government.
It's worth checking out Tor which allows for anonymous browsing.
Only people who need to encript will bother to deal with the hassels of encriptation. Encription is big flag that says to NSA's computers, "Look at me!" NSA can crack your 128 bit PGP in a matter of minutes.