Alternatively, one could create serious civil damages for those capturing surveillance imagery that causes various harms including false prosecution for any data they collected, even if it was unlawfully taken or used after it was collected. ... then let the liability work out the problem by making it too risky to run non-targeted mass surveillance apparatus.

This would avoid having to define what is and isn't a mass surveillance system. Any camera recording off your property would have a legal risk for the operator-- but if you're just recording locally and only using it to discourage or solve crime you're suffering the risk would be minimal and justified.