Internet is not propelling us towards an Orwellian reality and this decision by Iran is a testament to that -- it turns out that even petrodollars-fueled authorities can't control the Internet to a satisfying degree. It's also very difficult to gauge the value of mass surveillance because it leads to considerable problems with data analysis. While this report is a little light on data for obvious reasons, it offers an interesting perspective:

"The federal government is drowning in data now. The decision-makers have the ability to ask certain kinds of questions. But they cannot possibly handle the amount of specific information that has been computerized."

http://lewrockwell.com/north/north1118.html