I think it's possible that our expectations of privacy will change, and I think they have changed. At the same time, however, I think we all have a certain comfort level.
Let's use this example. Yes, I expect to be observed, if I'm walking down the street. However, I would be troubled by, and I think most of the people here would be troubled by, someone following me wherever I went in the course of a 24-hour day. It's not simply a case of expecting to be observed; it's really the degree to which you're observed, and how that information is being used, and how you might expect it to be used.
Yes, expectations of privacy will change. In fact, that's one of the problems with using them as a kind of legal test: that expectations of privacy do change and are not necessarily the same for every person. I might be more troubled than someone else is. One of the difficulties with using that concept in the law is that everyone's expectation is not exactly the same.