I've started following The Open Society Paradox, a blog by Dennis Bailey, which offers an alternative to much of the debate on privacy that one sees around the 'net. In one of his latest postings, Dennis discusses an article in Vanity Fair profiling Hank Asher and the very controvertial MATRIX system. MATRIX stands for "Multi-State Anti-Terrorism Information Exchange" designed to mine vast databases to pick out potential terrorists.
In The Open Society Paradox: A Balanced Article on Privacy, Bailey praises the article for its balance and engages in some blog-to-blog combat with Adam Shostack of Emergent Chaos. I'm not going to wade into the debate but suggest you check out the Vanity Fair article, Dennis' post and Adam's post.