Certainly would be upset, just like if I were misidentified by a human reading the plate number? Of course, I don’t see how it’s relevant though. I would expect at least some human review at some level, for sure!
On the other hand, I have experienced a violent mugging on my street where neither my camera, nor any of my neighbors cameras, worked well enough in low light to identify the plates at all. Car pulled up, passenger jumped out and attacked two older ladies. There are plenty of cases just like this, where video evidence is lacking and would make all of the difference, that I personally feel vastly outweigh potential plate reading issues.
I think that's conflation. Having high visibility of an area so that cameras can be consulted for evidence can be, as you attest, a good thing. Being tracked over an indeterminate length of time, profiled, and maybe one day punished for thoughtcrime, is a very different beast.
And if you think thoughtcrime is far-fetched or paranoid, you aren't paying attention. Governments around the world are moving to crush dissent by limiting gatherings for protest, labelling/charging people as terrorists without having committed any terrorist acts, etc. What makes you think anyone will ever be able to organise against oppression, even if the cause is just, when one is treated as guilty without committing any crime?