I'd argue they are both important points that are tightly interconnected. #2 is bad on it's own and in my mind it shouldn't even get to the merits of discussin

I'd argue they are both important points that are tightly interconnected. #2 is bad on it's own and in my mind it shouldn't even get to the merits of discussing #1 because at that point the debate is already lost in favor of surveillance. But beyond that, #1 is highly problematic, doubly so given the fact that government surveillance is basically a non-decreasing function.