>Assuming everyone in public is a suspect and continually investigating them, is a big change in how society works.

Well that's not exactly how it would work.

Everyone is tracked, but only certain people are watched. That added to the fact that any nation with a sufficiently complex legal system has no law abiding residents. You've always broken some law, somewhere.

So it would be more like:

>[Pick any person from] everyone in public [and the system has the capacity to list the reasons why that person] is a [criminal]

These systems aren't perfect recognition oracles - there are lots of errors, especially as you scale up the technology. At the end of the day, it's a probabilistic identification correlated to a stream with a mix of of reported or suspected crimes. Your framing completely misses the reality. I'd argue that the OP's language is a much better fit.

> Everyone is tracked, but only certain people are watched.

The "only certain people are watched" hinges on pinky swears, winks, and nods. IMO it's a distinction without a difference.