While I circumstantially agree, I hold it to be self-evident that the "optimal amount of grift is nonzero". I leave it to politicians to decide whether increased oversight, decentralization, or "solution X" is the right call to make.
I can't help but think that this is a "I have nothing to hide" argument. It's quite sisyphean to keep accounts perfectly segregated, therefore there's always a chance that personal information can be traced back and pieced together; which, in turn, has "boring-old security" implications: i.e., now someone possibly knows your habbits and times when you are at work
On the topic of working hours, flexitime is highly addicting and I cannot imagine anything that's better for a software developer. Clock in, have meetings, write code, commit, clock out. Overtime? Just leave early without asking your boss. It just makes sense. Plus, the negotiated working hours per week / working days / mandatory hours can be set to whatever value that makes sense.
Nobody is paying you to sit, people care about the working product.