" I really don't see the issue."
The issue is that your internet records, even in abstract form, will reveal just about every facet of your life. Your social/financial/religious/sexual interests, connections, political leanings, health issues etc will be open to analysis.
That is not the collated information you want in the hands of anyone who is unscrupulous or just plain careless.
For the time being we assume the latter to be hackers or "bad apples" with access to the data either legally or illegally.
Any democratic government must also be wary of making provisions which a later government can use to persecute sections of the population.
At the risk of invoking Godwins Law the perfect example is the "Enabling Act" created by the democratic parliament of the Weimar Republic. It was a precautionary measure for use if situations like the left/right faction street fighting escalated into a major instability threatening democratic government. Its provisions were used to cope with some outbreaks of that nature - increasingly between 1930 and 1933.
The measures could only be invoked by the Chancellor of Germany - giving him the power to override parliament and rule by decree.
In 1933 by a series of political tactical mistakes Hitler was given the office of Chancellor. He then invoked the powers of the Enabling Act to rule by decree as a matter of course - and the rest is history.
Part of his regime's persecution of sections of the populace was made easier by trawling records about individuals that had been collected by previous governments' departments for benign reasons.