Indeed, I already see this in the consumer space with Frigate users. Letting modern cameras handle the inference themselves makes running an NVR easier. Pretty soon all cameras will be this way, and as you say the output will be metadata that is easily collected and correlated. Sounds useful for my personal surveillance system and awful for society.

I feel like at some point we need to recognize the futility of solving this issue with technology. It is unstoppable. In the past we had the balls to regulate things like credit bureaus -- would we still do that today if given the choice?

We need to make blanket regulations that cover PII in all forms regardless of who is collecting it. Limits on how it can be used, transparency and control for citizens over their own PII, constitutional protections against the gov't doing an end run around the 4th amendment by using commercial data sources, etc.