Let's cross that bridge when we come to it.We have. The question of how to eliminate "class privilege" has remained open for quite a while and will for as long as the optimal distribution of scarce resources is still an active field of study.
It doesn't actually mean "no privacy for anyone". For that to be the case, society would have to be actually egalitarian, e.g. post-privilege.
You're delving into Foucault territory here, which is fine but also somewhat tangential. Of course the people doing the spying and the people who fund it will be less affected (but maybe not with the bad state of infosec), that's a given where any power structure is involved.
How would egalitarianism fix this? I think you're operating under a wholly different definition of egalitarianism than is commonly accepted. The only way to solve your dilemma is through a stateless society with a totally flat hierarchy with a method of economic exchange that doesn't involve a market system, or any mechanism that awards having more information.
They don't get killed by drones for starters.
Not yet.
If someone says homeless alcoholics should be rounded up and put into camps, then the fact that they aren't that, and don't have a friend in that situation, is their "privilege" they may not be aware of.
That's just asymmetry. You can just as easily have it be an oppressed group calling for the internment of a dominant group, which by definition they will not be a part of, and may not even be in contact with if there are factors like apartheid put into play. Calling it "privilege" makes no sense.
"Privilege" is not a complicated word, it means what it means in context and is perfectly fine to use.
The sociological concept of privilege is in fact an inversion of what we generally call a privilege. Sociological privilege often refers to constant and immutable characteristics that cannot be taken away, and moreover makes the value judgment that the group with privilege is bad, and that said privilege must be abolished. This is totally ass-backwards: it should be that the disadvantaged group is elevated to the same level of privilege, because more often than not (excluding class) "privilege" simply refers to the baseline that preferably all groups should be held to.