In the real world, this would lead to tremendous efforts to develop the ability to crimestop.
The mind should develop a blind spot whenever a dangerous thought presented itself. The process should be automatic, instinctive. Crimestop, they called it in Newspeak. He set to work to exercise himself in crimestop. He presented himself with propositions -- 'the Party says the earth is flat', 'the party says that ice is heavier than water' -- and trained himself in not seeing or not understanding the arguments that contradicted them.
D.H. Lawrence did a better job than I ever could of describing my personal objection to living in the society of universal surveillance:
"That I am I.
That my soul is a dark forest.
That my known self will never be more than a little clearing in the forest.
That gods, strange gods, come forth from the forest into the clearing of my known self, and then go back.
That I must have the courage to let them come and go.
That I will never let mankind put anything over me, but that I will try always to recognize and submit to the gods in me and the gods in other men and women."
I asked this question on IRC before and got some surprising answers.
Suppose, for the sake of argument, you get cryo-preserved and eventually wake up as an upload. Maybe meat->sim transfer ends up being much easier than sim->meat or meat->meat, or something. Further suppose that you are not particularly averse to a digital-only existence, at least not enough to specifically prohibit reviving you if this is the only option. Yet further suppose that sim-you is identical to meat-you for all purposes that meat-you cared about (including all your hidden desires and character faults). Let's also preemptively assume that any other attempts to fight this hypothetical have been satisfactorily resolved, just to get this out of the way.
Now, in the "real world", or at least in the simulation level we are at, there is no evidence that telepathy of any kind exists or is even possible. However, in the sim-world there is no technological reason it cannot be implemented in some way, for just thoughts, or just feelings, or both. There is a lot to be said for having this kind of connection between people (or sims). It gets rid of or marginalizes deception, status games, mis-communication-based biases and fallacies. On the other hand, your privacy disappears completely and so do any advantages over others the meat-you might want to retain in the digital world. And what you perceive as your faults are out there for everyone to see and feel.
As a new upload, you are informed that many "people" decided to get integrated into the telepathic society and appear to be happy about it, with few, if any, defections. There is also the group of those who opted out, and it looks basically like your "normal" mundane human society. There is only a limited and strictly monitored interaction between the two worlds to prevent exploitation/manipulation.
Would you choose to get fully integrated or stay as human-like as possible? Feel free to suggest any other alternative (suicide, start a partially integrated society, etc.).
P.S. This topic has been rather extensively covered in science fiction, but I could not find a quality online discussion anywhere.