Back then there was only the possibility of listening-in on particulars, and even then people did worry. They weren't fine with that. That's why there's wiretapping laws enacted in the 80s.
Today, and as things continue to progress with speech-recognition, LLMs, video recognition, etc. surveillance can be automated. It's looking conceivable to be able to process all communication population-wide in real-time. That would have been unimaginable back then.
Now, texts and calls today are only a small role of phones. For many people, it's their primary general computing device. It's how they interact with the world. It contains their entire digital life.
Couldn't look at your photo reels and videos, and diary, and every purchase you've ever made, every opinion you've ever said on a public space, every community you've ever interacted with, every location you've ever been in down to the room, from wiretapping a phone in the 80s.
> Some things are exceptionally hard to track now (like e2ee messages) that were trivial to track back then.
Can be easier than back then if stuff like chat-control comes to pass, because now the message can be obtained, processed and stored indefinitely in an automated fashion for everybody at once. E2EE becomes security theater for the most part.
You just said it yourself: the perceived danger of overreach was averted through new laws and control over what the government is doing.
If citizens still have a capacity to restrict the government via (enforced) laws, it doesn't matter much that the communications are in the clear. You can layer something on top just to be sure, but the foundation is laws and a functioning political system.
If there's no functioning political system, the government will just do whatever, like buying the same data they ostensibly can't collect from commercial providers (who weren't restricted from collecting it because there's no US GDPR).
If a country has a functioning political system, it can just do things like ban gun ownership, introduce mandatory IDs, publish everyone's yearly income, or criminalise calling other people slurs in public and not become an uncontrollable dictatorship. If it doesn't, corruption and democratic backsliding will happen regardless. Hyper-focusing on a few tools and superficial traits of a particular system in a particular moment is myopic.