"and has the ability to enter your house with guns"
If someone was trying to kill me I would welcome a policeman with a gun... and as long as the government collects needed data to deliver needed services, where's the problem? And, besides NSA & C. illegal-but-somehow-approved snooping, probably the government knows less about you than Facebook. Do you report it everytime you go on travel or vacation?
Also, the problem is not in companies collecting the minimum amount of data to deliver product and services. The problem i data harvesting, and their processing for specific targeting, especially to exploit the weakest ones.