For my American perspective...
Do you think the government is watching us more and reducing the amount over privacy we have?
Yes. Datamining, warrantless wiretapping, and screening texts/e-mail are all examples of the US government violating their citizen's privacy.
Do you think it's for the greater good?
Personally? No. But I do see the merit in the argument for it. They'd argue it in one way: it generates a greater degree of security. If you can catch a threat and prevent actuated harm, that justifies the subversion of the law of the land. Ultimately, from a hobbesian standpoint, the only thing a government need secure is the right to self-preservation. All other rights come second to it as a luxury.
So yeah, I get the argument. But I don't buy it. I believe there are other values that come into play to the same degree, if not in a greater magnitude, than that of security. I believe that if you continue with these intrusions of privacy, you violate the fourth amendment (again, my US perspective). I consider all searches unreasonable without a warrant, but I've been shot down in my opinion quite a few times by the courts. My view? If you've reason enough to search a person, you've reason enough to get a warrant. Having a hunch or a hunch based on circumstantial evidence is not enough.
Why do I hold this view? Because in the US we've the presumption of innocence. We are innocent until proven guilty. If we allow for the intrusion of privacy for the sake of security, we have also forfeit our presumptive right. The burden of proof shouldn't be on us, that mantra, "If you've nothing to hide, you've nothing to fear." We are innocent until they find reason to suspect otherwise. Now I don't have things to worry about, (though I'm sure I'm on a watch-list by this point.) but I don't like the idea of the law of the land being subverted. The rhetoric goes to the effect that we need to secure our citizens from threats abroad and within through these intrusions of privacy. But the problem is that you're destroying what it even means to be a citizen if you go against the laws. (Though the courts disagree with me. Then again, I've lost a lot of faith in the courts lately, so what can I say? I'm glad I disagree.)
Do you think technology plays a role in this?
Absolutely.