Privacy from family members and privacy from strangers are not the same thing and I venture say that people value the latter much more than the former.
Edit: And besides, in small knit societies the lack of privacy is reciprocal. It's not the same thing as having a small group of people who control massive data centers and have the capability to pick up on some dirt on anyone within hours of requesting it.
Oh I agree, but the future world we're facing is that everyone will have a little dirt on everyone else due to the proliferation of material---the example in the comment I responded to was your friends and family being fed a feed of your tripping on the street because a stranger tagged it as 'lol funny'.
Edit: And besides, in small knit societies the lack of privacy is reciprocal. It's not the same thing as having a small group of people who control massive data centers and have the capability to pick up on some dirt on anyone within hours of requesting it.