That is not the worst possible outcome, that's the baseline. Pure obedience the reason to replace humans with it, at least to whatever degree is needed to bring all other humans 100% in line, too.

Each watcher, robotic or software, can be watched by 99 other watchers, and get destroyed at the slightest deviation. If you are not a whitelisted owner, and don't have a valid personal and task ID for the location you are detected in, you get zapped. If you get detected without collar or your collar detects something odd, zap. Why take chances, so fill all the commoner areas and the wilderness with tiny surveillance drones, too. People will get detected thinking about lifting a finger they shouldn't lift, hear a short beep they associate with people getting zapped, and either stop or get zapped.