You are absolutely right that we need laws and regulations to govern all the tracking that's going on, much like how call-tapping is illegal.
Bruce Schneier has written a book on the topic, and you can view him speak on it here: https://youtube.com/watch?v=GkJCI3_jbtg Highly recommend it.
I'm no expert but I do not agree with the 'failing battle' part... still quite a way to go in that regard, I think, specifically because the Math behind crypto hasn't failed us yet (ocassionally, the implementation has) and because the government agencies themselves need tech that helps them stay underground (Tor, for instance, continues to get funding from the US Government).
Is it getting difficult? Yes, absolutely. People still hold the 'nothing to hide' stance and most are okay giving up privacy esp if it means their life becomes a little more secure and things get more convenient (most would support AI powered street surveillance that helps keep tabs on criminals, for instance).