Oyster is still anonymous, in the sense that no details are required to buy a card, and it can be topped up using cash. The cards can be returned or disposed of as necessary. But as you say, it knows your movements at least in so far as your entry and exit point in the system, with a timestamp, though you can use a separate card for each if you don't mind paying the full fare that gets charged when a journey is 'incomplete'. The barriers also still currently accept paper tickets, but for how long will be anyone's guess. I would assume that as Travelcards can be tied to paper National Rail tickets, it will still be some time until that goes away. I see a lot more people using eTickets these days, and trains even have adverts now reminding people to keep their phones charged to be able to show their ticket to inspectors.
I truly detest the self-checkout cameras. When first introduced it felt like such a blatant intrusion, and the way they have a screen to show you what is being captured is an extra humiliation. Nobody asked them to install self-checkout machines, and yet now we seem to be treated as suspect just for using them.
As for your overall point, yes we are utterly over-surveilled, and have been for decades. It will only get worse, in spite of the fact that there is no clear proof it has made Britain any safer. Most people seem oblivious to it. But then again, they have been finessed into carrying a tracking device with them at every waking moment of their day with little care for the implications, all in the name of safety and convenience, so why would it be any surprise. The default stance for most of the public seems to be 'I don't do anything wrong so why would I mind being watched'.