Privacy (in some sense) from each other.
No privacy from the guards.
Foucault's description of Bentham's Panopticon: Isolate prisoners from each other while keeping them visible to the guard tower, not sure if they're under surveillance.
Creates a sense of paranoia and distrust of fellow inmates.
Breaks down the possiblity of a sense of community from forming.
Insiduous because it can be alleged to be "for the protection of privacy".
I call this kind of privacy "panoptic privacy".
Example: Key escrow keeps your matters private from neighbours, but not from the guards of a police state.